How Allbirds' Valuation Went From $4 Billion to $39 Million

wwd.com • March 31, 2026 • business

Key Points:

Allbirds, once a disruptive sneaker brand known for its sustainable $95 Wool Runner, is being acquired by American Exchange Group for just $39 million, marking a significant decline from its 2021 IPO valuation.
The company has faced growing net losses over the years, with losses reaching $152.5 million in 2023 and narrowing only slightly to $77.3 million in 2025, alongside declining revenues from $277.5 million in 2021 to $152.5 million in 2025.
Allbirds struggled due to rapid expansion, loss of core identity, increased competition from established brands like Nike and Adidas, and failed product lines including workout apparel and vegan leather shoes.
Operational challenges, management changes, and store closures—including shutting all full-price U.S. stores by early 2025—further weakened the brand's market position amid a tough macroeconomic environment.
The acquisition deal awaits shareholder approval and is expected to close in Q2 2026; American Exchange Group’s portfolio includes other footwear and lifestyle brands such as Aerosoles and Ed Hardy.

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