Allbirds on Monday said it received a notice from Nasdaq flagging its share price remaining below $1 for a month. The embattled sneaker seller has six months to trade at more than $1 for at least 10 consecutive days or risk being delisted, but it could receive another six months extension if it doesn’t meet that deadline.
Allbirds’ share price has plummeted more than 90 percent since its IPO in November 2021. Its dismal stock performance reflects the brand’s declining sales in the past year following an expansion into activewear and running shoes. The company’s revenue dropped 15 percent year-over-year to $254 million, and its net losses widened 52 percent to $152 million in 2023.
The notice from Nasdaq comes one month after Allbirds’ co-founder Joey Zwillinger stepped down as chief executive. Zwillinger was succeeded by footwear veteran Joe Vernacchio, who is now responsible for executing the brand’s ongoing turnaround plan, which includes closing at least 10 stores this year and partnering with distributors in overseas markets like South Korea, Japan and Australia. Allbirds is also re-releasing core products in new materials and launching a zero-carbon shoe this year to regenerate demand.
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