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Allbirds (BIRD)
NASDAQ:BIRD
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Allbirds
(NASDAQ:BIRD)
49Neutral
Positive Factors
Cost Management
Cost savings from closing 20 stores and reducing SG&A expenses by $24 million create a more positive working capital dynamic for future investments.
Earnings Performance
Allbirds reported upside to sales, with better gross margin and operating cost control for a narrower-than-expected loss.
Marketing Strategy
Encouragement from initiatives across product, marketing, and the customer experience, including a positive response to the spring brand campaign.
Negative Factors
Macro and Tariff Risks
Supply chain risk from tariffs adds some risk to the expectation for an acceleration in sales/margin performance.
Profitability Concerns
Investor focus remains on the lack of profitability and cash burn rate, which is not expected to inflect in the near-term.
Sales Performance
Sales guidance for the second quarter is about 12.5% below the Street’s expectation and represents a year-over-year decline of about 25%.
Allbirds (BIRD) vs. S&P 500 (SPY)
Market Cap
$55.60M
Dividend YieldN/A
Average Volume (3M)50.78K
Price to Earnings (P/E)―
Beta (1Y)1.67
Revenue Growth-23.63%
EPS Growth41.36%
CountryUS
Employees542
SectorConsumer Cyclical
Sector Strength75
IndustryApparel - Retail
Share Statistics
EPS (TTM)-2.56
Shares Outstanding5,515,234
10 Day Avg. Volume38,427
30 Day Avg. Volume50,777
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.41
Price to Sales (P/S)0.00
P/FCF Ratio-0.62
Enterprise Value/Market Cap0.53
Enterprise Value/Revenue0.03
Enterprise Value/Gross Profit0.40
Enterprise Value/Ebitda-0.08
Forecast
1Y Price Target
$9.50Price Target Upside37.68% Upside
Rating ConsensusHold
Number of Analyst Covering4
Allbirds Business Overview & Revenue Model
Company DescriptionAllbirds, Inc. (BIRD) is a sustainable footwear and apparel company renowned for its commitment to environmental responsibility and innovative design. Founded in 2016 in San Francisco, California, the company focuses on creating eco-friendly shoes and clothing using natural materials like merino wool, eucalyptus tree fibers, and sugarcane. Allbirds targets environmentally conscious consumers seeking stylish and comfortable options that have a lower environmental impact.
How the Company Makes MoneyAllbirds generates revenue primarily through the direct-to-consumer sale of its footwear and apparel products via its e-commerce platform and retail stores. The company's business model is centered around selling high-quality, sustainable products at a premium price point, leveraging its brand image as an environmentally-friendly option. Key revenue streams include online sales from its website and physical sales from brick-and-mortar locations. Additionally, Allbirds may engage in strategic partnerships and collaborations to expand its market reach and enhance brand visibility, contributing to its earnings.
Allbirds Financial Statement Overview
Summary
Allbirds faces significant financial challenges, including declining revenues and consistent net losses. The high gross profit margin of 42.7% is overshadowed by negative EBIT and EBITDA margins, highlighting difficulties in managing operating expenses. The balance sheet shows decreasing stockholders' equity and rising leverage, while cash flows remain negative, indicating liquidity concerns.Income Statement
Allbirds has faced declining revenues, with a revenue decrease from $297.8 million in 2022 to $189.8 million in 2024. The company has consistently reported negative net income, with a worsening net profit margin, currently at -49.2% for 2024. Despite a high gross profit margin of 42.7% in 2024, the EBIT and EBITDA margins are negative, indicating challenges in efficiently managing operating expenses.45
Neutral
Balance Sheet
The balance sheet shows a concerning trend with decreasing stockholders' equity, now at $101.7 million in 2024, down from $316.8 million in 2022. The debt-to-equity ratio has increased, currently standing at 0.53. This indicates rising leverage, though the company has managed to keep a positive equity ratio of 53.8%, reflecting some stability in asset management.50
Neutral
Cash Flow
Allbirds' cash flow statement reveals significant challenges, with a negative free cash flow of $-67.96 million in 2024. The operating cash flow to net income ratio is negative, suggesting inefficiencies in operational cash generation. The free cash flow has been consistently negative, indicating ongoing liquidity concerns.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 189.76M | 254.06M | 297.77M | 277.47M | 219.30M | Gross Profit |
| 81.06M | 104.23M | 129.63M | 146.66M | 112.74M | EBIT |
| -97.55M | -153.00M | -96.22M | -32.88M | -29.22M | EBITDA |
| -81.56M | -97.85M | -83.93M | -34.36M | -22.59M | Net Income Common Stockholders |
| -93.32M | -152.46M | -101.35M | -45.37M | -25.86M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 66.73M | 130.03M | 167.14M | 288.58M | 126.55M | Total Assets |
| 188.88M | 312.70M | 462.36M | 488.43M | 244.04M | Total Debt |
| 53.67M | 93.95M | 105.85M | 0.00 | 204.05M | Net Debt |
| -13.06M | -36.08M | -61.29M | -288.58M | 77.50M | Total Liabilities |
| 87.19M | 127.38M | 145.59M | 91.42M | 269.55M | Stockholders Equity |
| 101.69M | 185.33M | 316.77M | 397.00M | -25.51M |
| Cash Flow | Free Cash Flow | |||
| -67.95M | -41.09M | -121.95M | -75.03M | -48.93M | Operating Cash Flow |
| -63.86M | -30.22M | -90.58M | -50.85M | -34.58M | Investing Cash Flow |
| 2.12M | -7.71M | -32.29M | -25.64M | -16.28M | Financing Cash Flow |
| 287.00K | 640.00K | 3.58M | 238.15M | 102.19M |
Allbirds Technical Analysis
Positive
6.90
Price Trends
5.46
Positive
6.12
Positive
8.43
Negative
Market Momentum
0.35
Negative
69.03
Neutral
90.43
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BIRD, the sentiment is Positive. The current price of 6.9 is above the 20-day moving average (MA) of 5.53, above the 50-day MA of 5.46, and below the 200-day MA of 8.43, indicating a neutral trend. The MACD of 0.35 indicates Negative momentum. The RSI at 69.03 is Neutral, neither overbought nor oversold. The STOCH value of 90.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BIRD.
Allbirds Risk Analysis
Allbirds disclosed 77 risk factors in its most recent earnings report. Allbirds reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Allbirds Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $19.43B | 82.58 | 15.84% | ― | 34.75% | 60.65% | |
61 Neutral | $6.97B | 11.38 | 2.88% | 3.90% | 2.64% | -22.07% | |
61 Neutral | $544.81M | ― | -34.37% | ― | -13.14% | 44.84% | |
49 Neutral | $55.60M | ― | -72.29% | ― | -23.63% | 41.36% | |
49 Neutral | $258.68M | ― | -0.50% | ― | 1.57% | 98.64% | |
47 Neutral | $65.87M | ― | -22.43% | ― | -3.10% | -381.92% | |
44 Neutral | $27.32M | ― | -37.62% | ― | -8.61% | -33.30% |
* Consumer Cyclical Sector Average
Performance Comparison
BIRD
Allbirds
6.71
-7.47
-52.68%
TLYS
Tilly's
0.92
-5.04
-84.56%
ZUMZ
Zumiez
13.03
-5.35
-29.11%
DLTH
Duluth Holdings
1.90
-2.62
-57.96%
SFIX
Stitch Fix
4.23
1.93
83.91%
ONON
On Holding AG
59.67
22.36
59.93%
Allbirds Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 27.54%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view, highlighting strong execution in product launches and marketing strategies, which are expected to drive future growth. However, the company faces challenges with gross margin pressures and an uncertain macroeconomic environment due to tariffs. Despite these challenges, management expressed confidence in achieving top-line growth in the fourth quarter.Q1-2025 Updates
Positive Updates
Exceeding Bottom-Line Guidance
The company's adjusted EBITDA loss exceeded expectations, showing an improvement of 11% year-over-year, reflecting better-than-expected gross profit and strict cost control.
Successful Product Launches
New products, including the Canvas Piper and utility products, ranked in the top five of sales, illustrating strong consumer response and supporting sales growth.
Innovative Marketing Campaign
The 'Cards on the Table' marketing campaign generated over 25 million Instagram views, improving brand visibility and re-engagement with customers.
Inventory Management Efficiency
Inventory levels were down 29% compared to the previous year, reflecting effective inventory management strategies.
Positive Revenue Outlook
Despite challenges, the company expects a return to top-line growth in Q4, driven by new product offerings and marketing initiatives.
Negative Updates
Gross Margin Pressure
Q1 gross margins declined by 210 basis points year-over-year due to a higher mix of international sales and costs related to sunsetting products.
Macroeconomic and Tariff Challenges
The evolving tariff landscape and macroeconomic uncertainty may impact consumer behavior and supply chain stability.
Choppy Consumer Behavior
Consumer behavior has been unpredictable, with fluctuations in traffic and conversion rates since early April.
Company Guidance
During the Allbirds, Inc.'s First Quarter 2025 Earnings Conference Call, the company provided guidance indicating a positive trajectory toward growth and profitability. The net revenue for Q1 was reported at $32 million, aligning with their guidance, while the gross margin stood at 44.8%, slightly down by 210 basis points year-over-year but surpassing expectations. The adjusted EBITDA loss was $19 million, reflecting an 11% improvement from the previous year. For the full year 2025, Allbirds anticipates net revenue between $175 million and $195 million, factoring in an $18 million to $23 million negative impact due to distributor transition and store closures. The guidance for the second quarter is a net revenue range of $36 million to $41 million, with an adjusted EBITDA loss between $19 million and $16 million. The company aims for a return to top-line growth by Q4, driven by new product offerings and marketing initiatives. Despite the challenges posed by tariffs and macroeconomic uncertainties, Allbirds remains cautiously optimistic about achieving mid-forties gross margins for the year.Allbirds Corporate Events
Executive/Board ChangesShareholder Meetings
Allbirds Director Neil Blumenthal to Step Down
Neutral
Apr 24, 2025
On April 23, 2025, Neil Blumenthal, a member of Allbirds‘ Board of Directors since August 2018, announced he will not seek reelection at the 2025 Annual Meeting of Stockholders. His decision is not due to any disagreements with the company, and he will continue his role until the meeting, indicating a smooth transition for the company.
Spark’s Take on BIRD Stock
According to Spark, TipRanks’ AI Analyst, BIRD is a Neutral.
Allbirds faces significant financial challenges with declining revenues and ongoing losses. Technical indicators show bearish momentum, and valuation metrics are unattractive due to negative earnings. However, strategic efforts highlighted in the earnings call, such as cost reductions and marketing campaigns, offer some optimism for future improvement.
To see Spark’s full report on BIRD stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.