Allbirds, Inc. (NASDAQ:BIRD) Q1 2024 Earnings Call Transcript

Annie Mitchell: Sure. We feel good about the work that we’ve done to right size our overall cost structure. You mentioned there’s a little bit of timing impact there and there is. For the full year of 2024, we expect SG&A dollars to be down versus prior year. And the expected decline will come from the full year benefit of previous workforce reductions and partial year savings related to 2024 store closures and effectively zero OpEx in the international regions that have transitioned to a distributor model. All of that will then have the full year impact as we go into 2025. We — go ahead.

Dylan Carden: No, I don’t want to ruin your flow. This is great.

Annie Mitchell: And this is a quick reminder. This year, in the second half of the year, we will have more OpEx savings than we do in the first half due to the timing of those store closures and the international transitions. If I kind of state simply when I think about our OpEx, we’ve strengthened our operating model and lowered our cost structure, positioning the business to grow and achieve profitability at a smaller scale.

Dylan Carden: Got it. And last one for me, if I kind of map out the guide, you gave some sort of cadence there a little bit, but it looks like kind of a fourth quarter inflection in the United States business. And I guess does that just follow from product introduction, marketing spend, kind of — I don’t know what you want to say, sort of a reintroduction around holiday? Is that kind of what you’re thinking as far as sort of what might drive that low double-digit declines to maybe something closer to flat? I know comparison is on a strike basis, but —

Joe Vernachio: I think you did a really good job of listing out almost exactly what the back half of the year looks like for us. It’s product introductions. It’s a little bit of an inflection in our marketing spend and just gaining some base momentum in our business.

Dylan Carden: Excellent. Thanks a lot for all the detail.

Operator: As there are no further questions at the queue at this time, this concludes our Q&A session. I would like to turn the call over back to Joe Vernachio, CEO, for brief closing remarks.

Joe Vernachio: Well, thank you, everyone for joining, and we look forward to seeing you next quarter.

Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.