Allbirds threatened with delisting
Allbirds is at risk of being delisted from the Nasdaq Stock Market (NASDAQ) amid a tumbling stock price.
NASDAQ notified the sustainable footwear brand that it is no longer in compliance with the stock market’s listing criteria, which requires listed companies to maintain an average closing share price of at least $1.00 over a consecutive 30 trading-day period.
Allbirds reported that NASDAQ notified the company about its compliance status on April 2, 2024.
According to NASDAQ rules, Allbirds has 180 calendar days from the date of the notice — which is Sept. 30, 2024 — to regain compliance and meet the minimum share price requirement. The retailer can regain compliance at any time within the allocated period as long as its stock closes at $1.00 per share for a minimum of 10 consecutive business days. If Allbirds does not regain compliance during the 180 day period, the company may be eligible for an extension that spans an additional 180 days.
The retailer will continue to be listed and traded on the market, subject to Allbirds’ compliance with other Nasdaq continued listing standards. The company’s operations are not affected by receipt of the notice, according to a company statement.
Allbirds intends to actively monitor its stock price and will consider actions that it may take to regain compliance with the continued listing requirements, the statement said. The company did not share its plan of action.
Allbirds' delisting notice comes on the heels of a CEO change — its second in less than a year. On March 15, Joe Vernachio was named CEO. He has served as the company’s COO since 2021. Vernachio replaced co-founder Joey Zwillinger who is continuing as a member of the Board of Directors and serving as a special advisor for the company.
Zwillinger originally shared the role of CEO with co-founder Tim Brown. In May 2023, Brown took on the role of chief innovation officer, making Zwillinger sole CEO.
The newest leadership change was announced with Allbirds’ disappointing fourth quarter earnings. For the period ending Dec. 31, 2023, the company reported a net loss of $56.8 million, compared to a net loss of $24.9 million a year ago. Net revenue also dropped, falling 14.5% to $72.0 million in the fourth quarter.
Overall, the company struggled throughout 2023 with full year net revenue declining 14.7% to $254.1 million. The company also reported a net loss of $152.5 million for the year, down from $101.4 million in 2022.
Allbirds also reported that it planned to close between 10 and 15 U.S. retail store locations in 2024.
San Francisco-based Allbirds, which was founded in 2016, operates approximately 60 stores across the globe.