Allbirds Restructuring Presentation Deck
November 2023, 15 slides
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strategic transformation plan | Allbirds
legal disclaimer this presentation contains forward looking statements within the meaning of the private securities litigation reform act of that are based on our management current expectations and projections about future events and trends that we believe may affect our condition results of operations business strategy short term and long term business operations and objectives and needs all statements contained in this presentation other than statements of historical facts including statements regarding our our product and brand strategy efforts to optimize stores and slow pace of openings transition from a direct go to market model to third party distributor model capital efficiency and productivity activities increasing traffic and conversion a reductions cash optimization actions estimated and or targeted cost savings cogs reductions product line and core franchise management targets new pro including business mix cost of goods savings target and a savings target long term goals targets and guidance including cash pro cash position and these forward looking statements are subject to a number of risks uncertainties and assumptions including our ability to execute our strategic transformation plans cation initiatives or our long term growth strategy in our operating results our ability to achieve outlook and guidance targets our ability to successfully transition to a distributor model in certain international markets our ability to achieve our cost savings targets by economic uncertainty in our key markets impairment of long lived assets the strength of our brand our net losses since inception the competitive our reliance on technical and materials innovation our use of sustainable high quality materials and environmentally friendly manufacturing processes and supply chain practices our ability to attract new customers and increase sales to existing customers the impact of climate change and government and investor focus on issues our ability to anticipate product trends and consumer preferences including with respect to the product launches we have planned for the second half of and our ability to forecast consumer demand moreover we operate in a very competitive and rapidly changing environment in which new risks emerge from time to time it is not possible for our management to predict all risks nor can we assess the impact of all factors on our business or the extent to which any factor or combination of factors may cause our actual results or performance to differ materially from those contained in any forward looking statements we may make further information on these risks and other factors that could cause our results performance and achievements to differ materially from any results performance or achievements anticipated expressed or implied by these forward looking statements is included in the lings we make with the sec including our quarterly report on form for the quarter ended and future reports we may with the sec from time to time the forward looking statements contained in this presentation are made as of if this presentation is reviewed after even if made available by us on our or otherwise it may not contain current or accurate information we disclaim any obligation to update or revise any forward looking statement based on new information future events or otherwise except as required by applicable law we may not actually achieve the plans intentions or expectations disclosed in or expressed by and you should not place undue reliance on our forward looking statements our forward looking statements do not the potential impact of any future acquisitions mergers dispositions joint ventures or investments in addition this presentation contains certain non measures the non measures are presented for supplemental informational purposes only reconciliations to the most directly comparable measure calculated and presented in accordance with are provided at the end of this presentation this presentation includes market data and other statistical information from our own internal estimates and research as well as surveys conducted by third parties while we believe that surveys conducted by third parties are reliable we have not independently veri third party sources while we believe our internal company research is reliable and the of our market and industry are appropriate neither such research nor these have been veri by any independent source this presentation includes references to our net promoter score which we use to measure our customers brand loyalty and satisfaction and which can range from to based on the question how likely are you to recommend to a friend or colleague responses were collected from would not recommend to would recommend our net promoter score is based on a survey of approximately consumers commissioned by us and conducted by boston consulting group in our net promoter score was calculated by using the standard methodology of subtracting the percentage of customers who responded that they are not likely to recommend a score of or lower from the percentage of customers who responded that they are very likely to recommend a score of or and averaged across all geographic markets the net promoter score gives no weight to customers who declined to answer the survey question this method is substantially consistent with how businesses across our industry and other industries typically calculate their net promoter score financial verified definitions simplification fluctuations | Allbirds
has a strong foundation brand purpose led customer insights driven innovation digitally native model deep management bench agen | Allbirds
extensive consumer insights work informing our strategies one of the highest in peer group strong brand loyalty and satisfaction rates opportunity to improve conversion with female customers who generally have higher awareness than men but lower purchase consideration sharply a new consumer segment coined desire for products that with an active of shoppers would consider purchasing from again partial to premium products and brands core customer is and skews female reasons customers recommend quality comfort design active adventurous and world traveler cares about the environment and making a positive impact defined fit | Allbirds
the road to transformation was born in first year as a public company navigating covid need to make big moves quickly introduced strategic transformation plan launched the wool runner dubbed the most comfortable shoe in the world by time we have since sold of this icon launched new materials innovation built third party relationships added key leadership marched towards our target of pro and continued sales growth after delivering multiple years of double digit revenue growth the covid environment proved difficult to navigate lower sales and elevated inventory levels required decisive actions to right size the business and energize the brand we outlined four strategic pillars designed to drive growth expand gross margin and transition to an asset and light model that will enable us to reconnect with our core consumers and meet new consumers in a capital efficient manner it profitability | Allbirds
strategic transformation plan to drive sustained and pro table growth reignite product and brand optimize distribution and store pro evaluate transition of international go to market strategy improve cost savings and capital efficiency profitable profitability if | Allbirds
and beyond we have dramatically reduced our cost structure and inventory position in to allow for pro on a lower topline as we look towards and beyond we plan to build on our strong brand foundation to amplify fresh innovative product that celebrates our icons and catalyze pro table growth in future years joey founder profitability profitable | Allbirds
reignite product and brand strategies year to date results key initiatives long term goals transition to a franchise offense approach rationalizing unproductive and driving energy through the core upgrade and elevate core franchise silhouettes rebuild organic demand via marketing social in led program calibrate with desires and brands to in our consumer drive more consideration with her via gender differentiated and unique silhouettes inventory down yoy as of updated and elevated increased brand awareness expect to be cleared through non core legacy product by year end balanced mix of promotional activity and marketing spend marketing expense down product launches in and throughout wool runner in capsule collection for her in tree runner in core franchise extensions new in campaign with increased investment in in higher percentage of sales represented by core franchises cone social first influencer led influence in influencer | Allbirds
optimize distribution and store pro strategies drive four wall pro and focus on new customer acquisition from existing store portfolio increase penetration of channel customers partner with marquee retailers to meet new consumers and increase brand awareness with wholesale channel expansion beginning in year to date results paused new store openings and trimmed wholesale orders to await fresh and more innovative product in appointed retail industry veteran as new head of stores enhancing visual merchandising and messaging instilling a selling and performance culture improving store navigation key initiatives long term goals leverage strategic accounts as bridge to expanded wholesale clients in launched on in the in expected to drive an incremental pro table revenue stream strengthened operating metrics at stores expanded number of third party doors profitability profitability profitable | Allbirds
evaluate transition of international go to market strategy strategies transition to a distributor model in certain international markets increase pro capture inventory efficiency reduce complexity in our headquarters drive improvement in working capital leverage the local and wholesale capabilities of regional distributors to achieve long term and scalable growth trade off between short term growth and higher quality revenue lower operating expense enables strong through of gross pro to the bottom line year to date results transitions announced through represent of total net revenue canada and south transitioned japan and new under expected to transition mid expect to generate contribution margins north of ongoing discussions with potential partners in other regions key initiatives long term goals stabilize and grow transitioned key regions operating under a regions expand to new geographies via distributors distributor model more pro table and scalable international business profitability flow profit profitable | Allbirds
improve cost savings and capital efficiency strategies year to date results key initiatives long term goals drive cost of goods sold cogs shifted to new manufacturing improvements million of expected savings by partner for footwear in higher quality products expected cogs savings of per reduce selling general administrative a expenses million of expected savings by optimize cash improve inventory and working capital pair enhanced sourcing optimizing materials costs to generate expected cogs savings of per pair implemented a reduction million in a savings continued cogs efficiency via sourcing to gain incremental savings above targets higher landed product margin out of factories as a of direct business gross margin expansion a leverage | Allbirds
our vision fresh innovative product offerings optimized distribution more efficient and pro table international model enhanced gross margins and improved cost structure positive adjusted positive cash flow full year art a profitable me at | Allbirds
our team is energized and focused on reigniting our growth our leadership team joey founder director brown founder chief innovation officer director chief financial officer benny chief technology culture officer joe chief operating officer kelly brand marketing industry ventures trade i a north face ear a | Allbirds
strong commitment to cut per unit carbon footprint in half by the end of business as usual emissions with flight plan commitments our projected average per unit carbon emissions in without any action to limit them our goal for what average per unit carbon emissions will be in with flight plan commitments our goal for what average product related carbon emissions will be in product related emissions exclude things like stores offices and employee travel targets through regenerative agriculture cilia renewable materials responsible energy development goals bae | Allbirds
thank you | Allbirds
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