Allbirds to Close Remaining Full-price US Stores

A challenged Allbirds Inc. is making another move to boost profitability.

The lifestyle footwear brand will close its remaining full-price stores in the U.S. by the end of February. The closures will allow Allbirds to focus on its e-commerce platform, wholesale and international distributorships. These are the three components of the business that the company on Wednesday said “offer greater reach, flexibility and operating leverage.”

Following the closures, Allbirds will still operate two outlet stores in the U.S. and two full-price doors in London, which the company said will preserve “key brand touchpoints while prioritizing capital-efficient growth.”

“This is an important step for Allbirds, as we drive toward profitable growth under our turnaround strategy,” the firm’s CEO Joe Vernachio said. “We have been opportunistically reducing our brick-and-mortar portfolio over the past two years. By exiting these remaining unprofitable doors, we are taking actions to reduce costs and support the long-term health of the business.”

Allbirds in May 2025 unveiled a refreshed store concept in San Francisco as it rethought the in-store experience. But the shoe brand has been struggling as it faced a difficult macro environment with uncertainty around consumer spending. In the most recent third quarter, the company in November posted a net revenue decline of 23.3 percent to $33.0 million, versus $43.0 million in the same year-ago period. It also reported a net loss of $20.3 million, slightly better than the net loss of $21.2 million a year ago.

Allbirds will discuss the financial impact on its balance sheet during its fourth-quarter and full-year 2025 earnings conference call, expected in March. The company noted that it expects the closures to be “capital-light.” That suggests that it probably won’t incur significant costs in terminating the store leases. It wasn’t immediately clear how many full-price stores are left as Allbirds over the past two years has been opportunistically closing doors as needed.

Reducing store count eliminates investments in those doors, as well as exposure to inventory risks and a cyclical retail backdrop. It also allows for quicker responses by Allbirds to changing market conditions without the headache of related store operations and overhead costs to deal with.

Meanwhile, Allbirds continues to focus on new materials and shoe styles. In November, the brand unveiled what it called its “warmest” offering under its Kiwi Collection, which also includes Allbirds’ signature SweetFoam midsole.