43.2 per cent compared to 44.4 per cent in Q3 2024. This quarter’s sales decline was just further confirmation of the brand’s declining retail relevancy. Since 2022, Allbirds’ sales have dropped 54.6 per cent. However, this doesn’t mean that the brand is giving up without a fight.  Allbirds’ CEO, Joe Vernachio, who was promoted to this high-ranking position in March 2024, explained that the brand is focused on introducing new products to the market to rebuild enthusiasm for the brand.  For example, this September, Allbirds released a wool cruiser in 19 colors, introducing more vibrant hues than the brand had previously offered.  As Vernachio told analysts on a conference call last Thursday, “Since we last spoke in August, we’ve delivered a steady stream of compelling products that consumers are clearly responding to.” Although the CEO noted that the new product has been reviving some interest in the brand overall, it has partially diverted attention from Allbirds’ core lines, such as the original runner, and is slowing down the overall rebuilding journey. “This underscores that rebuilding our brand perception is a process that will require sustained execution across multiple product cycles,” Vernachio concluded. Where did Allbirds go wrong? Neil Saunders, Global Data’s managing director, provided very blunt feedback regarding Allbirds’ Q3 fiscal report.  “By no stretch of the imagination are these good results, and management’s attempt to jazz them up by saying that they are aligned with expectations will do little to convince investors that Allbirds is on the right track,” he said.  He explained that the brand’s 23 per cent revenue decline further underlines the fact that Allbirds has fallen out of favor with consumers, suggesting that its early success was more of a fad rather than the foundation for a sizable business. Ultimately, as Saunders told Inside Retail, the brand relied too heavily on its focus on sustainability, which, while worthy, was misplaced on a narrow range of relevant products. All of which wasn’t helped by the brand’s less-than-noteworthy store design.  Similarly, Scott Benedict, the founder and CEO of Benedict Enterprises, an omnichannel retail consulting firm, argued that the brand initially benefited from a period when consumers were actively seeking environmentally responsible choices. However, over time, that position has since gotten diluted.  “The product line expanded beyond its core hero shoes, price points crept upward, and competitors closed the sustainability gap while offering broader style selection. In short, Allbirds lost some of the sharpness that made it distinctive.” Can Allbirds make a comeback?  Both Benedict and Saunders noted that it will take more than a few new products to lift the brand’s profitability.  “One of the steps [for raising profits] was simply introducing a lot of different colorways. This isn’t really innovation – it’s just creating an illusion of choice that will not move the dial,” said Saunders.  Benedict, meanwhile, argued that the path forward is not simply ‘more new products’, but rather the right products that can reconnect the brand to everyday wearability. “The footwear space is unforgiving, consumers already have strong loyalties, and brand switching often happens only when the alternative feels both meaningfully better and clearly priced for everyday use,” he said. “Allbirds has to rebuild that everyday relevance, not just premium desirability.” Additionally, Benedict recommended that the brand establish its approach to wholesale partnerships and physical retail distribution. “The brand needs to meet customers where they already shop, not expect them to actively seek it out. Retail presence, especially in multi-brand environments, is one of the fastest ways to rebuild ‘social proof’.” Benedict affirmed that turnaround is achievable, but it will require sharper positioning, focused product discipline and a rebalanced go-to-market strategy that will reconnect the company to everyday life rather than as a niche aspirational brand to shoppers.  Saunders, though, theorized that Allbirds has little to no chance of returning to its glory days. Instead, it should focus on succeeding as a niche footwear retailer with carefully controlled distribution and the cost discipline befitting a smaller player.  While this contrasts heavily with the brand’s original pipedream of becoming an American household name with numerous stores and a global retail presence, it is certainly a better option than letting the once-mighty brand fade away into total retail obscurity. Further reading: Can Allbirds make a comeback with a new CEO and transformation plan?