Allbirds to Close Remaining Full-Price Stores in U.S. by February 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: seekingalpha
- Store Closure Plan: Allbirds will close all its full-price stores in the U.S. by the end of February 2026, aiming to streamline operations to support profitable growth, which is expected to reduce operational costs and optimize resource allocation.
- Capital-Light Strategy: The company indicated that this closure will be a capital-light endeavor and will discuss anticipated SG&A savings and related cash charges during its Q4 and full-year 2025 earnings conference call, expected in March 2026.
- Resource Reallocation: Following the closure of full-price stores, Allbirds will redirect resources towards its e-commerce platform, wholesale partnerships, and international distributorships, which is anticipated to enhance its competitiveness in global markets.
- Ongoing Operations: Despite the closures, Allbirds will continue to operate two outlet stores in the U.S. and two full-price stores in London, ensuring the brand's ongoing presence in key markets.
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Analyst Views on BIRD
Wall Street analysts forecast BIRD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BIRD is 14.00 USD with a low forecast of 14.00 USD and a high forecast of 14.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 3.970
Low
14.00
Averages
14.00
High
14.00
Current: 3.970
Low
14.00
Averages
14.00
High
14.00
About BIRD
Allbirds, Inc. is a global lifestyle brand, which uses sustainable materials to make footwear and apparel products. The Company’s products include men's shoes, women's shoes, men's apparel, women's apparel, and socks. It offers various categories of shoes, including everyday sneakers, active shoes, water-repellent shoes, slip-ons, high tops, and sandals. It provides various categories of men’s apparel, including socks, underwear, tops, and sweats. The Company’s women's apparel includes socks, tees, sweats, underwear, bags, hats, and insoles. Its core franchises include lifestyle and performance shoes, such as the Dasher and the Runner. Its products contain natural and recycled materials, such as superfine ZQ certified merino wool, tree fibers, and sugarcane. The Company’s physical retail channel consists of 33 company operated stores in the United States and United Kingdom, with the majority in the United States.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Allbirds Shifts Focus to E-commerce, Closes U.S. Full-Price Stores
- Strategic Shift: Allbirds announced it will close all U.S. full-price stores by the end of February to redirect resources towards e-commerce and partnerships, demonstrating the company's commitment to its turnaround strategy.
- Store Closure Impact: Over the past two years, Allbirds has been gradually reducing its brick-and-mortar presence by closing unprofitable locations, which is expected to positively impact the long-term health of the business by lowering costs.
- Declining Financial Performance: In its third-quarter earnings report, Allbirds reported a 23.3% year-over-year decline in net revenue, primarily due to changes in international distributors and store closures, highlighting the challenges the company faces in the market.
- Market Capitalization: Despite having a market cap of $32 million, Allbirds has seen its stock plunge over 80% in the past two years, reflecting significant pressure and a loss of market confidence during its transformation process.
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Allbirds Shifts Focus to E-Commerce, Closing U.S. Full-Price Stores
- Strategic Shift: Allbirds announced it will close all full-price U.S. stores by the end of February to focus on e-commerce, reflecting necessary adjustments under its turnaround strategy aimed at enhancing profitability.
- Store Operations Adjustment: While closing full-price stores, Allbirds will continue to operate two outlet stores in the U.S. and two full-price stores in London, indicating its ongoing presence in the global market.
- Financial Pressure: The company reported a 23.3% year-over-year decline in net revenue in its third-quarter report, primarily due to impacts from international distributor changes and physical store closures, highlighting the market challenges it faces.
- Poor Market Performance: With a market cap of $32 million, Allbirds has seen its stock plunge over 80% in the past two years, reflecting significant difficulties encountered in a highly competitive market environment.
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