Allbirds logged sales of $33 million of the third quarter, down 23 percent, as the U.S. brand continues to face declining sales for its sustainable footwear.

The San Francisco-based company said sales were negatively impacted  by structural changes, including impacts from international distributor transitions, and planned retail store closures.

Despite the sales drop, for the three months ending September 30, net losses narrowed to $20.3 million, compared to $21.2 million for the third quarter of 2024.

“We’re pleased to deliver third quarter results in line with our expectations, highlighted by a robust flow of new product introductions – many of which met with strong customer response,” said Joe Vernachio, CEO, Allbirds.

“Entering the final months of the year, we will continue to support our product engine with compelling marketing content to capture consumer mindshare and reignite growth. Throughout the holiday season, we will be spotlighting gifting ideas and emphasizing Allbirds’ core principles of Comfort, Style and Sustainability.”

“Our teams are focused on accelerating progress under our turnaround in the quarters ahead,” added Vernachio. “At the same time, we are taking definitive steps to further reduce costs, enhance liquidity, and pursue value-creating opportunities.”

Looking ahead, the company lowered its full-year guidance forecasting net revenue of $161 million to $166 million, compared to previous guidance of $165 million to $180 million.