Fashion
US brand Allbirds’ gross margin drops to 43.2% in Q3 FY25
The decline in gross margin primarily reflects a higher mix of digital and international distributor sales, as well as increased duties in the US business, which offset higher average selling price.
Allbirds reported Q3 FY25 net revenue of $33 million, down 23.3 per cent y-o-y, with gross profit of $14.2 million and a 43.2 per cent margin, down 120 bps.
Declines were driven by international distributor transitions, retail closures, and higher duties.
SG&A fell to $21.7 million.
The company focuses on cost reduction, liquidity, and growth initiatives.
In the third quarter of 2025, net revenue decreased 23.3 per cent to $33 million compared to $43 million in the third quarter of 2024. The year-over-year decrease is primarily attributable to structural changes, including impacts from international distributor transitions and planned retail store closures, the company said in a press release.
Selling, general, and administrative expense (SG&A) was $21.7 million, or 65.7 per cent of net revenue, compared to $31 million, or 72 per cent of net revenue in the third quarter of 2024. The decrease is primarily attributable to lower personnel expenses, occupancy costs, stock-based compensation expenses, and depreciation and amortisation expenses.
“We’re pleased to deliver third quarter results in line with our expectations, highlighted by a robust flow of new product introductions – many of which met with strong customer response,” said Joe Vernachio, CEO. “Entering the final months of the year, we will continue to support our product engine with compelling marketing content to capture consumer mindshare and reignite growth. Throughout the holiday season, we will be spotlighting gifting ideas and emphasising Allbirds’ core principles of comfort, style and sustainability.”
Net revenue in the first nine months of 2025 decreased 21.7 per cent to $104.8 million compared to $133.9 million in the first nine months of 2024. The year-over-year (y-o-y) decrease is primarily attributable to structural changes, including impacts from planned retail store closures and international distributor transitions.
Gross profit in the first nine months of 2025 totalled $44.8 million compared to $63.6 million in the first nine months of 2025, while gross margin declined to 42.7 per cent in the first nine months of 2025 versus 47.5 per cent in the same period a year ago. The decline in gross margin is primarily due to channel mix, with a lower percentage of sales coming from the retail business and a higher percentage coming from its digital and distributor channels, as well as increased promotional activity and higher inventory adjustments.
“Our teams are focused on accelerating progress under our turnaround in the quarters ahead,” added Vernachio. “At the same time, we are taking definitive steps to further reduce costs, enhance liquidity, and pursue value-creating opportunities.”
Fibre2Fashion News Desk (RR)
“This bill protects Louisiana workers and American businesses, ensuring loopholes don’t hold them back,” Dr Cassidy said in a press release.
US Senators Bill Cassidy and Sheldon Whitehouse have introduced the Last Sale Valuation Act to close the ‘first sale’ customs loophole that lets importers underpay duties.
The bipartisan bill would base tariffs on final sale values, strengthen US Customs enforcement and curb duty evasion.
Supporters say it will protect American manufacturers, workers and federal revenue.
If passed, the bipartisan measure would grant clearer enforcement authority to US Customs and Border Protection (CBP), streamline valuation reviews and reduce disputes over documentation, while curbing mis-invoicing and related-party pricing schemes linked to tariff evasion and illicit financial activity.
The legislation has drawn support from the American Compass, the Coalition for a Prosperous America and the Southern Shrimp Alliance.
“Cassidy’s ‘Last Sale Valuation Act’ strengthens customs valuation by assessing duties on the final transaction value of goods entering the US,” said Mark A DiPlacido, senior political economist at the American Compass, adding that closing the judicially created ‘first sale’ loophole would reduce duty evasion, simplify enforcement and increase customs revenue.
Jon Toomey, president of the Coalition for a Prosperous America, said the bill is “an important first step in restoring customs integrity,” ensuring duties are paid on the true commercial value of imported goods and helping level the playing field for American manufacturers and workers.
Fibre2Fashion News Desk (CG)
Rising global political and economic tensions have driven sustained increases in raw material and energy costs, impacting the textile machinery sector.
Rieter has faced mounting input expenses amid strong demand and price hikes for various materials.
The company has so far absorbed the additional costs but will implement price adjustments from March 2026 as pressures persist.
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“Running continues to gain extraordinary momentum around the world as more people choose movement as part of their approach to health and wellness,” said Dan Sheridan, Brooks CEO. “Our opportunity ahead is incredibly exciting and I have great confidence in the entire Brooks global team. Following a record 2025, we enter 2026 energised by the innovations and programmes we’ll deliver to runners and retailers worldwide.”
Brooks Running closed 2025 with record global revenue, up 16 per cent year-over-year, marking its ninth straight year of growth.
Strong gains came from North America, EMEA, and Asia Pacific–Latin America, led by a surge in China.
Growth was driven by performance innovation, strong footwear sales, and new lifestyle collections and collaborations.
In EMEA in 2025, the performance running footwear market grew 14 per cent in France and 21 per cent in Germany with Brooks outpacing both 22 per cent and 28 per cent, respectively, the company said in a press release.
In 2025, ten Brooks footwear styles posted year-over-year revenue growth of 20 per cent or more. The Glycerin series, featuring Brooks’ new DNA Tuned midsole foam, delivered 33 per cent revenue growth and a 27 per cent increase in unit sales year over year, accelerated by a 46 per cent year-over-year revenue surge in Q4.
At Paris Fashion Week in January 2025, Brooks unveiled its new lifestyle footwear collection, which celebrates the brand’s 112-year heritage as a leader in sport and answers customer desire for performance-inspired silhouettes to wear on and off the run. Brooks partnered with streetwear pioneers and visionaries to launch multiple sought-after collaborations including the Brooks x STAPLE Adrenaline GTS 4 with New York-based Jeff Staple and the Brooks x RSVP Gallery Caldera 8 with the renowned Don C.
Fibre2Fashion News Desk (RR)
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