Allbirds to shutter remaining full-price US stores by February 2026

Sustainable footwear brand Allbirds has announced it will close all remaining full-price retail locations in the US by the end of February 2026. The decision marks a significant shift in the company’s physical retail strategy as it prioritises a leaner, more capital-efficient operating model.

The San Francisco-based company stated that the closures will allow it to redirect resources toward its e-commerce platform, wholesale partnerships, and international distributorships. According to the group, these channels offer greater reach and operating leverage compared to its existing brick and mortar portfolio.

Joe Vernachio, chief executive officer, described the move as a critical step in the company’s ongoing turnaround strategy.

“We have been opportunistically reducing our brick-and-mortar portfolio over the past two years,” Vernachio said in a press release. “By exiting these remaining unprofitable doors, we are taking actions to reduce costs and support the long-term health of the business.”

Shift toward wholesale and international distribution

The restructuring follows a period of financial pressure for the brand. In the third quarter ending September 30, 2025, Allbirds reported a 23.3 percent decrease in net revenue to 33 million dollars, down from 43 million dollars in the same period of the previous year. The company attributed much of this decline to structural changes, including planned store closures and the transition to distributor models in international markets.

As part of its reimagined footprint, Allbirds will maintain a minimal physical presence in the US by continuing to operate two outlet stores. Internationally, the brand will retain its two full-price stores in London to serve as key brand touchpoints.

The transition away from direct-to-consumer (DTC) retail toward wholesale is already underway. Allbirds plans to expand its presence into 150 specialty retail stores by spring 2026, leveraging third-party partners to reach customers without the overhead costs of long-term leases and in-store staffing.

Financial outlook and anticipated savings

Allbirds expects the store closures to be a “capital-light” endeavour. The company plans to provide further details regarding anticipated selling, general, and administrative (SG&A) savings and related cash charges during its fourth quarter and full year 2025 earnings conference call, which is expected to take place in March 2026.

For the full year 2025, the company has updated its net revenue guidance to between 161 million dollars and 166 million dollars. This outlook accounts for an estimated 23 million dollar to 25 million dollar impact tied directly to the closure of US stores and international distributor transitions.

The group remains focused on improving liquidity, having recently secured a new 75 million dollar asset-based revolving credit facility to support its strategic transformation.