The US shoe and apparel retailer Allbirds Inc. slipped deeper into the red in the second quarter of 2022 and is now planning extensive reforms. The clothing range is also affected, the share of which, according to the shoe specialist, was around ten percent.
“In the future, Allbirds will focus on a simplified clothing range that emphasizes the versatility of natural materials,” the company said when asked by FashionUnited. Customers would “prefer classic, non-seasonal items,” so the brand “wants to shift its evergreen products from less than half to almost all of the new clothing lines in the future.” The specialist magazine Textilwirtschaft (TW) had previously reported on the planned cuts.
Allbirds was already taking large write-downs on unsold clothing items, according to its second-quarter earnings report released last week. Although the company was able to increase its sales in the months of April to June compared to the same period last year by 15 percent to 78.2 million US dollars (76.9 million euros), the net loss grew from 7.6 to 29.4 million US dollars -dollars (28.9 million euros). Management then lowered its full-year guidance and announced some “simplification” initiatives. Above all, they are intended to help reduce logistics and personnel costs and “optimize” inventories.
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