Latest news with #Vernachio
Yahoo
22-05-2025
- Business
- Yahoo
Allbirds, Which Produces Most of Its Shoes in Vietnam, Is Tightening Inventory and Adjusting Prices Amid Trump's Tariff Trade War
Allbirds has its sights set to the second half of 2025 as it expects new launches to bring in more customers and boost sales. And according to Allbirds chief executive officer Joe Vernachio, not even Trump's tariff trade war can stop him from executing his plan. More from WWD Nike Returns to Amazon with Strategic Price Hikes Canada Goose Expects Only 'Minimal Impact' From Tariffs - and Stock Jumps How Leaders Tackle Tariffs, Supply Chain Costs and Geopolitical Uncertainty 'While the current tariff landscape adds complexity, our team is well equipped to navigate these dynamic conditions, drawing on years of industry experience,' Vernachio said on the company's first quarter earnings call on Thursday evening. The CEO added that while most of the company's manufacturing is based in Vietnam, Allbirds is 'proactively managing' potential cost of goods pressure through tighter inventory buys and ongoing evaluation of future price opportunities. At the same time, Allbirds' growing international distributor business helps mitigate exposure to U.S. tariff impacts, Vernachio noted. Assuming a continuation of the 10 percent incremental tariff on Vietnam goods following the 90-day pause, the company said it still expects to deliver gross margin in the mid-40s for full year 2025. Annie Mitchell, chief financial officer at Allbirds, elaborated on what the company is doing in terms of tariff mitigation. 'We've reduced our initial inventory purchases for fall '25 as well as our buy plans for spring '26, where we will have the flexibility to chase into goods as needed,' Mitchell told analysts on Thursday. 'Next, because the majority of our product offerings will be new starting this fall, we have the ability to go to market with modestly higher prices. Lastly, in addition to these factors, overperformance on the bottom line in Q1 provides us with added flexibility to navigate the current environment.' Mitchell added that the company is expecting an influx of new product in the second half of the year, which was 'built and designed with higher margin targets.' 'We do not expect that [any] reduction in purchasing [power] really hinders our ability to grow because we believe in our plan,' the CFO added. 'We're excited about the product coming to market in late summer, supported by the marketing work that we've already done. And then as we will continue to watch the consumer, [we will] see how things continue to shake out, and we will have the opportunity to chase into spring/summer '26 product if needed.' This comes as the San Francisco-based company reported on Thursday that its net revenue in the first quarter of fiscal 2025 decreased 18.3 percent to $32.1 million, compared to $39.3 million in the same time last year. There was also a net loss in Q1 of $21.9 million, compared to $27.3 million in the first quarter of 2024. Earnings for Q1 were in line with Allbirds' expectations, however. For the first quarter, the company was expecting net revenues between $28 million to $33 million. Looking ahead, Allbirds expects net revenue for fiscal 2025 to be between $175 million to $195 million. In the second quarter of 2025, the company expects net revenue between $36 million to $41 million. Best of WWD Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos] Crocs Collaborations From Celebrities & Big Brands You Should Know Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-05-2025
- Business
- Yahoo
Allbirds, Which Produces Most of Its Shoes in Vietnam, Is Tightening Inventory and Adjusting Prices Amid Trump's Tariff Trade War
Allbirds has its sights set to the second half of 2025 as it expects new launches to bring in more customers and boost sales. And according to Allbirds chief executive officer Joe Vernachio, not even Trump's tariff trade war can stop him from executing his plan. More from Footwear News Allbirds Expects to 'Deliver Topline Momentum' in the Second Half After Beating Q1 Revenue Expectations Crocs CEO Andrew Rees on Tariffs: Vietnam Concerns Loom, Industry To 'Go Up In Terms Of Price' 'While the current tariff landscape adds complexity, our team is well equipped to navigate these dynamic conditions, drawing on years of industry experience,' Vernachio said on the company's first quarter earnings call on Thursday evening. The CEO added that while most of the company's manufacturing is based in Vietnam, Allbirds is 'proactively managing' potential cost of goods pressure through tighter inventory buys and ongoing evaluation of future price opportunities. At the same time, Allbirds' growing international distributor business helps mitigate exposure to U.S. tariff impacts, Vernachio noted. Assuming a continuation of the 10 percent incremental tariff on Vietnam goods following the 90-day pause, the company said it still expects to deliver gross margin in the mid-40s for full year 2025. Annie Mitchell, chief financial officer at Allbirds, elaborated on what the company is doing in terms of tariff mitigation. 'We've reduced our initial inventory purchases for fall '25 as well as our buy plans for spring '26, where we will have the flexibility to chase into goods as needed,' Mitchell told analysts on Thursday. 'Next, because the majority of our product offerings will be new starting this fall, we have the ability to go to market with modestly higher prices. Lastly, in addition to these factors, overperformance on the bottom line in Q1 provides us with added flexibility to navigate the current environment.' Mitchell added that the company is expecting an influx of new product in the second half of the year, which was 'built and designed with higher margin targets.' 'We do not expect that [any] reduction in purchasing [power] really hinders our ability to grow because we believe in our plan,' the CFO added. 'We're excited about the product coming to market in late summer, supported by the marketing work that we've already done. And then as we will continue to watch the consumer, [we will] see how things continue to shake out, and we will have the opportunity to chase into spring/summer '26 product if needed.' This comes as the San Francisco-based company reported on Thursday that its net revenue in the first quarter of fiscal 2025 decreased 18.3 percent to $32.1 million, compared to $39.3 million in the same time last year. There was also a net loss in Q1 of $21.9 million, compared to $27.3 million in the first quarter of 2024. Earnings for Q1 were in line with Allbirds' expectations, however. For the first quarter, the company was expecting net revenues between $28 million to $33 million. Looking ahead, Allbirds expects net revenue for fiscal 2025 to be between $175 million to $195 million. In the second quarter of 2025, the company expects net revenue between $36 million to $41 million. Best of Footwear News A Complete Calendar of All the Footwear Trade Shows in 2025 A Timeline of Nike's 5 CEOs That Have Held the Role Since 1972 These Theories About How Black Friday Got Started Will Surprise You
Yahoo
09-05-2025
- Business
- Yahoo
Allbirds Expects to ‘Deliver Topline Momentum' in the Second Half After Beating Q1 Revenue Expectations
Allbirds chief executive officer Joe Vernachio is confident that company is delivering on its turnaround plans as the shoe brand reports its latest earnings. In the first quarter of fiscal 2025, the San Francisco-based company reported that net revenue decreased 18.3 percent to $32.1 million, compared to $39.3 million in the same time last year. There was also a net loss in Q1 of $21.9 million, compared to $27.3 million in the first quarter of 2024. More from Footwear News Tapestry Tops Q3 Estimates and Raises Outlook Despite Difficult Backdrop Saucony and Merrell See Double-Digit Growth in Q1 as Turnaround Takes Hold at Wolverine Worldwide 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 a higher mix of business from international distributors, increased promotional activity and higher freight costs per unit in its direct business. Earnings for Q1 were in line with Allbirds' expectations, however. For the first quarter, the company was expecting net revenues between $28 million to $33 million. For analysts, Allbirds beat their consensus. According to Yahoo Finance, analysts were expecting earnings in Q1 to be between $28 million and $31.5 million. 'We're pleased to report another quarter of progress against our plans, delivering financial results within or above our expectations,' Vernachio said in a statement. 'The foundational work we have done over the past year is converging with our key focus areas of product, marketing and customer experience and positioning us to generate expected topline momentum in the second half of the year.' Looking ahead, Allbirds is keeping its guidance for the year, unlike many of its other footwear counterparts that have elected to pull their guidance due to the economic uncertainty spurred by Trump's tariff war. Still, the company said it expects negative impacts of approximately $18 million to $23 million of revenue associated with the transition from a direct selling model to a distributor model in certain international markets and the closure of certain Allbirds stores in the U.S. As such, Allbirds expects net revenue for fiscal 2025 to be between $175 million to $195 million. In the second quarter of 2025, the company expects net revenue between $36 million to $41 million. 'Despite the macro backdrop, positive indicators from our initial product and marketing initiatives, combined with strong execution, make us confident in our long-term trajectory,' Vernachio added. Best of Footwear News A Complete Calendar of All the Footwear Trade Shows in 2025 A Timeline of Nike's 5 CEOs That Have Held the Role Since 1972 These Theories About How Black Friday Got Started Will Surprise You Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
