Q1 2024 Allbirds Inc Earnings Call Transcript
Key Points
- Allbirds Inc (BIRD) achieved significant improvement in gross margin and narrowed its adjusted EBITDA loss, despite a 28% sales decline.
- The company is executing a strategic transformation plan aimed at regaining top-line momentum and positioning the brand for growth in 2025.
- Allbirds Inc (BIRD) has transitioned to a distributor model in international markets like Canada and South Korea, enhancing local marketplace expertise and wholesale capabilities.
- The company reported a healthy inventory position and a solid balance sheet with $102 million in cash and cash equivalents and no outstanding borrowings.
- Allbirds Inc (BIRD) saw positive consumer feedback and robust initial conversion rates for its new product launches, indicating effective product and brand strategy.
- Allbirds Inc (BIRD) experienced a 28% decline in sales, reflecting lower overall demand levels and strategic decisions impacting revenue.
- The company plans to close 10 to 15 underperforming US store locations in 2024, which could impact short-term revenue and incur one-time cash charges.
- Despite transitioning to a distributor model internationally, there is a significant revenue impact expected from these changes.
- Allbirds Inc (BIRD) is facing headwinds from necessary strategic actions, including store closures and distributor transitions, which may affect top-line growth.
- The company's full-year guidance anticipates a continued decline in revenue, with a headwind of $32 million to $37 million related to strategic actions.
Good afternoon and thank you for standing by. At this time, I would like to welcome everyone to Allbirds First Quarter 2024 earnings conference call. (Operator Instructions) Thank you. I would now like to turn the call over to Christine Greene, Investor Relations. Please go ahead.
Good afternoon, everyone, and thank you for joining us. With me on the call today are Joe Vernachio, CEO; and Annie Mitchell CFO. Before we start, I'd like to remind you that we will make certain statements today that are forward-looking within the meaning of the federal securities laws, including statements about our financial outlook, including cash flow and adjusted EBITDA expectations, 2024 guidance targets, impact and duration of external headwinds, strategic transformation plan and related planned efforts, go-to-market strategy planned transition to a distributor model in certain international markets, anticipated distributor model arrangements and expected profitability, cost savings targets, gross margin estimates, product time lines and
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