Christine, everyone. you, Thank welcome, and
quarter transformational of bottom-line for Allbirds. report to results a during top time build our We expectations are and pleased another that
are track strategic profitability our into for drive a on solidly have now out transformation We and laid and two quarters we towards back to work, traction our March, roadmap in expectations. gained
have believe me storm currently faith don't a Missouri, We the in but model. show in we
We we not goals. sustained reporting our cash and until are rest on and flow and achieve we'll profit sharply focused durable
continue on to laying progress to We profitable make growth. groundwork drive the
reducing to savings, our working grow are overhead, We inventory with on international suppliers of levels, our markets. in working streamlining cost capital profitably goods and trimming
This marked on incremental past quarter of progress those all dimensions.
years. $XX approximately while XX% ending price, prudent inventory financial for First, result approach year-over-year on they where This is to below our quarter and the the declined inventory in and planning time integrity. on level million the basis, are the two a brand first consumer meeting maintaining balanced
million cost million range $XX XXXX $XX to versus Also million $XX XXXX. materials range a Next, expected trending are $XX XXXX versus target upper of on basis. SG&A savings we our between in to XXXX reaffirm our management, the we of by and confident factory strategic of and savings towards continued optimization are are we cost of that sourcing management, the of million end goods footprint cost we to volume-neutral efforts of on
quarter long-term. our and over with cash, commitment efficiency operating we to a capital $XXX lastly, the of cash year usage And significantly closed the versus ago reflecting driving improved million
of geographies driving anticipate in quarters. go-to-market announcing and wholesale part These intent from Most a to region, omnichannel the overseas first South transition as an recently, signing transitions the we volume proof two part at announced scope, coming executed work. we of distributors on Korea. direct our to today with our aimed We to international third-party another plan in point of encompassing two distributor Canada model under material are additional Transformation via a letters left distribution. model, in and
transformation plan. strategic of one under is model international our four Transitioning our pillars the key
go-to-market leverage one, As on two, profitability and of the US overall gross operating stores; international product expenses. and a four, reminder, distribution margin direct model; improving brand; those transition towards a three, our reigniting evaluating wall include in strategy optimizing four- distributor and and
brief with on you take how and a these each brand. of through and progressing, we're product strategies update I'll starting
Our product on important also with team on focus these our laser-focused franchises core assortment with our remains to a from of models, and the engage consumers. while revitalizing driving more loyal recalibrating delivering our business innovation
experience, XX this over which meaningfully, with our in the strong begin ability in shape continue build in and greater the year expect With confidence brand clear, a deliver To be consumer incredibly of the momentum long-term. in NPS next XXXX. quarter, core to we our of to helps an we reconnect to to wonderful spring drive take
select this innovation help several newness buys with are customers. our delivered thoughtful delight callouts. year to noteworthy inventory measured and We've There
extension golf recent Our the our from around core consumers solid world. franchise has reviews met with rave demand of dasher golf and the
tournaments, in date. and comfortable With much our perfect our lowest We our organically Tour more collection boast our is PGA spec. and footprint also to out ever having playing Superlight in products April, carbon players travel round for lightest with dropped that a them sneaker finding to
debuted month, a artists collaborations string designed we Artist of with reach voices consumers. creative to series, Last new and amplify our
In Riser core Rubin. The towards designer us see fashion a with future, in and series Olivia our other will first partnership this created in edition with our the is collaborations. focus you franchises increase limited London-based
recently, past a most to during for that look Most rather Tree have launched we us consumers in technical years very Flyer versatility taught high for couple running lives. their of us support our the the marathons. shoe, Well, active quality than X.
consumers' occasions inventory tightly matched changes the the elevate and aesthetic update this lifestyle our that buying we better. message and important perspective, approach to needs marketing for meet product to have from introduced have an addition In
our was to as launched business that shoe be Wool have significant innovation most when in described We key will additional change plan a the This year, update to XXXX the highly comfortable world. second first in visible this it hero including the half the deliver to we Runner. consumers this the and in to of franchise broadly
X gender-differentiated a a in to trends This our the product The comfort Wool a will modernized for just differentiation superior with her. aesthetic and leaning Runner and QX also of year, coming ahead have execution will materials and right novelty taste further drive into a what's strategy durability. against deliver will and be begin capsule expression. seasonally
sell to discipline While measured we to management of buys trending and are we year, new and pleased more this exercising plan excitement ahead inventory are and some we're and consumers bringing in see launches on still cases through for expectations. our newness
leadership the carbon world's further by box shoe. industry the Looking first sustainability and further our the cementing release and pleased with net-zero our we to of consumer ahead, MX.XNSHOT are Project,
XXXX While in way beyond. to collaborations that project for this have we volume, small anticipate will potential momentum the in the catalyze and pave important
To and drive success exploration of we we the our spring, showcase leading will this holiday up XXXX selling the throughout season. to supernatural employ all this newness to social-first a expanding traffic, on of programs Building to and our half continue campaign influencer-led second influencer be approach. of marketing the
transition anticipate marketing continue Day that offers refined will coupled like during and during this execution windows We approach, help consumer-led this year. back-to-school with our price promotional Labor compelling
both US consumers. distribution our omni that and to increase consumers and among store to know spend also our optimizing profitability. reach way second Turning channel brick-and-mortar, important is own new an our pillar, and third-party We valuable
bringing and Ohio. at in Creek Walnut full the total opened we count in US two one Columbus, opened area, US Connecticut in to QX, end. additional Subsequent close stores Greenwich, QX, our US FFA to price of quarter the During door XX we store
XXXX lease against reminder, early these opened US locations further no have timing, were three a planned. As currently we and openings
a new opened overseas QX, in international marking On plan location Germany during XXXX. we the store our opening front, last Homburg, for
through of to year. the US Returning expect base, end the and store we the remains to challenging, traffic this persist
culture includes As consistent we designed messaging, targeted visual across and help our are we sets. profitability, our of strategies, US energy excitement optimize bring to on and number a selling the organization. This floor that more greater underway a to work new to merchandising establish store initiatives performance
substantial somewhat wholesale, have a past over elevated, down progress Promotional months. made working lower but exit position. in trended so we couple levels existing In inventory healthy remain this year we of that the
who levels, closely product We are pace to with a measured newness very understand fortunate priority be recalibrate marquee inventory bring at lineup, partners channel. the move our our we to manage and as working to
the pop up of concept our case comfort commitment Selfridge enhancing third our while in Street, located example making the store shoppers. been style visibility delivering and to has highlights strength the noteworthy of relationships for One global party partnerships. future UK, buzz a The carbon collaborations our tremendous, of premier to is way experience six-week paving the and in our in opening London our their brand to credibility, bringing sustainability, and mid-July, Oxford the mutual immersive in location
announcement direct We pillar, Korea today's transition third of for profitable the strategy international our path model will in a South our beginning onto Now and brand a transitioning of our towards growth markets. Allbirds in distributors overseas more to go-to-market expected mark markets. distributor the to in Canada believe
We've with drive strong right to merchandising the products right been capabilities right the searching the for partners for channels.
to ability with a local the enhance and equity as brand fuel engagement. connect well As consumer, customer
the multi-faceted of to and this model growth scalable distributor for position long goal strategic towards designed Allbirds The internationally. and the is term is shift brand
geography. with us believe each help expertise we local regional our leveraging resonate and build global wholesale to will by in First, equity these upon respective brand partnerships capabilities consumers
bring shift reduce will of lower operation overall A short to excited years sales we what cumulative improve they're in we own expenses will strategic our very in We're on unit the complexity this mid-term. generate of and and to to growth our profitability. anticipate experience might achieve is us and the these to plans secondary of operating benefit distributors committed about attain, which helping the growth excess
us balance. positions inventory and the adoption to this overall reduce cash of up in our internationally inventory Lastly, up free model tied
that a minimums and letters anticipate be time arrangements we will on As multiyear duration in in blueprint, plan and to based and volume, Korea marketing include of these South directional we the intent, the commitments. Canada
We strong our these margin US title margins distributor transfer expect partnerships under expected or our our partners business, at [Indiscernible]. cash dynamics anticipate flow contribution anticipate gross us equal higher deliver to with but international wholesale to from below business and
distributors are who from markets. This have high ahead, partners caliber expertise potential for we are industry's Looking impressed brand collaborate. eager regard the of hearing to each Allbirds a by with other in the we includes and are international
be other in in will countries us transitions announce confidence we future discussions quarters. that gives to ongoing able Our additional
gross operating expenses. outlined Moving of to the savings we in entering progress and cost are to pillar, final managing we targets the fourth and continued made track half QX the second improving deliver and our previously. on overall We margins year,
contacts on XXXX compared by savings SG&A run with to end million you $XX to million at in $XX includes in and additional of to COGS will $XX the savings shortly. This million XXXX. in Annie our provide $XX million rate
it Before progress change over us to The to I pass I of allowed such make our work, important spirit, how want resilience thus flock in is performing. the and well resolute note big to her, transformation. our hard in far face has
teams work collectively energized we aligned opportunity Our focused on objectives growth. to core phase our take are superior our to next by of the execution as into and win. on Allbirds
to transformations see positive XXXX. work like goal proud second year cash We this doing in require of in stacking confidence half that tough everyone our I'm managing hands EBITDA achieving trajectory relentless the focus with adjusted and and the our on of entering our the and are
near long create better vision, way. our is both underpinning in a better always, commitment our to objectives and things unwavering term As term
to Annie over Now, discuss to call financials. I'll the the turn
