On the same day that Allbirds announced COO Joe Vernachio’s promotion to CEO, effective March 15, the company also revealed a decline in fourth-quarter net revenue to $72 million.

A fall in average selling price, driven by greater promotional activity, somewhat offset by an increase in third-party net revenue, led to a 14.5% decrease in sales for the three months ending December 31, according to the San Francisco-based sustainable footwear and apparel company.

Net revenue for the full year 2023 was $254.1 million, a decline of 14.7%.
The American firm’s net loss increased to $152.5 million in 2023 from $101.4 million the previous year due to the precipitous decline in sales.

As Joey Zwillinger, co-founder of Allbirds and CEO-to-be until his promotion this month by Vernachio, put it, “The company made meaningful progress in 2023 both operationally and financially, ending the year in a much stronger position,” he said.

As a special advisor to Allbirds, Zwillinger will continue to serve on the board of directors.

In light of the revolutionary changes we made last year and the exceptional leadership we have, I have full faith in the team and, more specifically, in Joe Vernachio’s ability to lead Allbirds into its next phase. We came into 2024 with a solid financial footing, a balanced inventory, and an improved infrastructure.

“Looking ahead, Joe’s focus on growth and rebuilding consumer momentum through compelling products and storytelling is what the company needs now, and sets Allbirds up to achieve durable, profitable growth and create value for our shareholders,” he said.

As previously stated, Allbirds has finalized its agreements with distributor partners in Japan and Australasia.

As part of its previously declared “Strategic Transformation Plan,” the San Francisco-based corporation shifted from direct sales to a distributor model in four worldwide countries, according to the agreements.