Shares of Allbirds Inc. dropped over 16 percent in after-market trading on Thursday as the footwear company lowered its guidance for the year following its latest earnings report.

In the second quarter of fiscal 2025, the San Francisco-based company reported that net revenue decreased 23.1 percent to $39.7 million, compared to $51.6 million in the same time last year. There was also a net loss in Q2 of $15.5 million, compared to $19.1 million in the first quarter of 2024.

Allbirds noted that its year-over-year decrease is primarily attributable to the company’s planned retail store closures and international distributor transitions. The company also said that its gross margin declined in the period primarily due to increased promotional activity, inventory adjustments primarily asso

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