Footwear group Allbirds has revealed that revenues fell by 9.8% to $70.5m (£55.3m) in the second quarter of the year, as it reported a net loss of $28.9m (£22.7m).
The group attributed these results to a fall in the average selling price, driven by promotional activity over the period, as well as an estimated $700k (£549k) negative impact from foreign exchange.
Despite this, gross profit totaled $30.1m (£23.6m) against $28.2m (£22.1m) the prior year, largely due to lower inventory write-downs, lower freight and logistics costs, and a higher mix of international sales, partially offset by the decrease in average selling price.
Over the period, Allbirds said it made “continued progress” with the execution of its strategic transformation plan, which has been designed to “reignite growth”, improve capital efficiency and drive improved profitability.
Joey Zwillinger, co-founder and CEO, said: “We are pleased to report another quarter of solid progress against our strategic transformation plan. Most notably, we gained traction across key benchmarks, including reducing inventory levels, lowering operating cash use and exercising cost control.
“Our teams are laser focused on the four key pillars under our plan, which has us on track to reignite growth, and improve capital efficiency with the goal of driving improved profitability.”
