Sustainable footwear and lifestyle brand Allbirds announced on Tuesday fourth-quarter net revenue fell to $55.9 million, as the footwear firm grappled with international distributor transitions and planned retail store closures.

The San Francisco-based sustainable footwear and apparel company said that sales decreased 22.4% for the three months ending December 31, as a result of lower unit sales within its direct business.

For the full-year 2024, net revenue decreased 25.3% to $189.8 million versus a year ago. As a result of the plummeting sales, the U.S. company reported a net loss in 2024 of $93.3 million, or $11.87 per basic and diluted share.

“2024 was a year of progress both operationally and financially,” said Joe Vernachio, chief executive officer. 

“We strengthened our operating model, driving gross margin expansion and cost reduction, while also bolstering Allbirds’ international presence via new distributor agreements. Importantly, we reignited our product and marketing engines, which is expected to fuel improvement in trend in the second half of the year, including our return to top line growth in the fourth quarter. We are continuing to operate with financial discipline as we focus on further advancing our plans around product, marketing, and customer experience.”

Looking ahead, the company expects 2025 net revenue to be in the range of $175 million to $195 million, with U.S. net revenue of $145 million to $160 million.

For the first quarter of 2025, net revenue is expected to be in the range of $28 million to $33 million, with U.S. net revenue of $22 million to $25 million. 

The company’s outlook for the full year reflects approximately $18 million to $23 million of negative impact to revenue associated with the transition from a direct selling model to a distributor model in international markets, as well as the closure of 20 Allbirds stores in the U.S., encompassing 2024 and year-to-date 2025.