Allbirds is replacing its CEO after a disappointing quarter.

The footwear retailer announced CEO and co-founder Joey Zwillinger will step down from his position effective March 15. He will be replaced by Joe Vernachio, who has served as chief operating officer since 2021.

Vernachio previously oversaw the return to profitability of Mountain Hardwear, Inc. as president of the retailer.

Allbirds named Joe Vernachio as its new CEO.

“I am thrilled to pass the mantle to Joe, who I have been working with for nearly three years,” Zwillinger said in a statement. “We turned to Joe to take on an expanded leadership role, increasing his responsibilities this past year and leveraging his capabilities as we developed our strategic transformation plan. Joe’s expertise has been particularly meaningful as we’ve worked to align our ethos with operational and financial execution.”

Zwillinger will continue on as a member of the board of directors and a special advisor to the company, Allbirds said. He became the sole CEO in May 2023 after serving as co-CEO with co-founder Tim Brown. Brown has since stepped into the role of chief innovation officer.

Allbirds is No. 344 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest North American online retailers. Digital Commerce 360 categorizes Allbirds as an Apparel & Accessories retailer.

Allbirds Q4 and 2023 results

Allbirds reported net revenue declined 14.5% to $72.0 million in the fourth quarter ended Dec. 31. It also reported a net loss of $56.8 million, compared to a net loss of $24.9 million in the year-ago period.

Full fiscal year net revenue declined 14.7% to $254.1 million. Net loss was $152.5 million, from $101.4 million in 2022.

“The Company made meaningful progress in 2023 both operationally and financially, ending the year in a much stronger position,” Zwillinger said. “We entered 2024 with a strong cash position, healthy inventory composition and volume, and a strengthened foundation. Looking ahead, Joe’s focus on growth and rebuilding consumer momentum through compelling products and storytelling is what the company needs now, and sets Allbirds up to achieve durable, profitable growth and create value for our shareholders.”

Allbirds transformation plan

Allbirds also said that it’s continuing on with the transformation plan first announced in 2023. Revenues have continued to decline since the plan was first introduced. 

The plan is designed to “reignite growth in the coming years, as well as improve capital efficiency, and drive improved profitability,” the company said in a statement. Incoming CEO Joe Vernachio will oversee it going forward.

Allbirds’ strategy will focus on four key areas:

• Product and brand: Create a new brand strategy that resonates with consumers through new products and impactful marketing.
• Optimize distribution and store profitability: Drive traffic and conversion in stores while strategically closing underperforming locations.
• Evaluate international strategy: Transition certain international markets into distribution models.
• Improve cost savings and efficiency: Stick to the cost saving plan outlined in 2023.

Under this plan, Allbirds anticipates annual revenue will decline again in fiscal 2024. The footwear retailer provided an outlook of $190 to $210 million.

Allbirds earnings

For the fourth quarter ended Dec. 31, Allbirds reported:

• Net revenue declined 14.5% to $72.0 million.
• Net loss was $56.8 million, compared to a net loss of $24.9 million in the year-ago period.

For the fiscal year ended Dec. 31, Allbirds reported:

• Net revenue declined 14.7% to $254.1 million.
• Net loss was $152.5 million, from $101.4 million in 2022.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. 

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