Allbirds Reports Fourth Quarter and Full Year 2023 Financial Results; Achieves Q4 Financial
Guidance Targets
Mar 12, 2024
Allbirds COO Joe Vernachio Appointed CEO as Company Accelerates Strategic Transformation Plan
Company Provides 2024 Outlook
SAN FRANCISCO, March 12, 2024 (GLOBE NEWSWIRE) -- Allbirds, Inc. (NASDAQ: BIRD), a global lifestyle brand that innovates with naturally
derived materials to make better footwear and apparel products in a better way, today reported financial results for the fourth quarter ended December
31, 2023.
Separately, the Company also announced today that COO Joe Vernachio has been appointed as CEO, effective March 15, 2024. He will oversee all
operations and continue advancing Allbirds’ strategic transformation plan. Co-Founder & CEO Joey Zwillinger will remain on the Board of Directors
and serve as a special advisor to Allbirds.
Fourth Quarter and Full Year 2023 Overview

Fourth quarter net revenue decreased 14.5% to $72.0 million versus a year ago; full year net revenue decreased 14.7% to$254.1 million versus a year ago.
Fourth quarter net loss of $56.8 million, or $0.37 per basic and diluted share; full year net loss of $152.5 million, or $1.01
per basic and diluted share.
Fourth quarter Adjusted EBITDA1 loss of $19.5 million; full year adjusted EBITDA1 loss of $78.4 million.
Inventory at year end of $57.8 million, representing a decrease of 51% versus a year ago.
Significantly reduced fourth quarter and full year operating cash use; fourth quarter operating cash use of $4.7 million
compared to $8.4 million a year ago and full year operating cash use of $30.2 million compared to $90.6 million in 2022.
At December 31, 2023, the Company had $180.0 million of liquidity, including $130.0 million of cash and cash equivalents
and $50.0 million of availability under its revolving credit facility.
Finalized agreement with Australasia distributor in Q4 and subsequently finalized agreement with Japan distributor.
“The Company made meaningful progress in 2023 both operationally and financially, ending the year in a much stronger position,” said Joey Zwillinger,
Chief Executive Officer. “With the transformative actions we completed over the past year, coupled with world-class leadership, I am confident in theteam, and in particular, Joe Vernachio’s stewardship of the brand for this next chapter for Allbirds. 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 growthand create value for our shareholders.”
Fourth Quarter Operating Results
In the fourth quarter of 2023, net revenue decreased 14.5% to $72.0 million compared to the fourth quarter of 2022. The year-over-year decrease is
primarily attributable to a lower average selling price, driven by increased promotional activity, partially offset by an increase in third-party net revenue.
Gross profit totaled $27.4 million compared to $36.3 million in the fourth quarter of 2022, and gross margin declined to 38.0% compared to 43.1% in
the fourth quarter of 2022. The decline in gross profit and gross margin is primarily due to the decrease in average selling price.
Selling, general, and administrative expense (SG&A) was $41.5 million, or 57.7% of net revenue, compared to $41.6 million, or 49.5% of net revenue
in the fourth quarter of 2022. The decrease is primarily attributable to a decrease in stock-based compensation, partially offset by an increase todepreciation and amortization expense.
Marketing expense totaled $14.9 million, or 20.6% of net revenue, compared to $16.8 million, or 20.0% of net revenue in the fourth quarter of 2022,
reflecting a reduction in marketing spend compared to the same period in 2022, driven by decreased digital advertising spend.
Impairment expense totaled $27.4 million, or 38.1% of net revenue, compared to $3.3 million, or 3.9% of net revenue in the fourth quarter of 2022,
resulting from the non-cash impairment of property and equipment and operating lease right-of-use assets associated with certain of our retail stores.
Restructuring expense totaled $1.2 million, or 1.7% of net revenue compared to nearly zero in the fourth quarter of 2022, primarily as a result of
employee-related benefits and professional service fees associated with execution of the strategic transformation plan announced in March 2023.
In the fourth quarter of 2023, net loss was $56.8 million compared to $24.9 million in the fourth quarter of 2022, and net loss margin was 78.9%
compared to 29.5% in the fourth quarter of 2022.
In the fourth quarter of 2023, Adjusted EBITDA1 was a loss of $19.5 million, compared to a loss of $12.5 million in the fourth quarter of 2022, andadjusted EBITDA margin1 declined to (27.1)% compared to (14.9)% in the fourth quarter of 2022.

Full Year Operating Results
Full-year 2023 net revenue decreased 14.7% to $254.1 million compared to $297.8 million in 2022. The year-over-year decrease is primarily
attributable to a lower average selling price, driven by increased promotional activity, partially offset by an increase in third-party net revenue.
Gross profit in 2023 totaled $104.2 million compared to $129.6 million in 2022, while gross margin declined to 41.0% in 2023 versus 43.5% in 2022.
The decrease in gross profit and gross margin is primarily due to the decrease in average selling price.
SG&A in 2023 was $174.0 million, or 68.5% of net revenue, compared to $166.7 million, or 56.0% of net revenue, in 2022, with the increase primarily
attributable to an increase in operational expenses due to a full year of operations for stores opened during 2022, including depreciation expense, rent,
and utility expense.
Marketing expense in 2023 totaled $49.0 million compared to $59.1 million in 2022 and improved as a percentage of net revenue to 19.3% from 19.9%
for the same period last year due to decreased digital advertising spend.
Impairment expense totaled $27.4 million, or 10.8% of net revenue, compared to $3.3 million, or 1.1% of net revenue in the fourth quarter of 2022,
resulting from the non-cash impairment of property and equipment and operating lease right-of-use assets associated with certain of our retail stores.
Restructuring expense in 2023 totaled $6.8 million, or 2.7% of net revenue, compared to $0.8 million, or 0.3% of net revenue, in the same period in
2022, primarily as a result of higher professional fees and employee-related expenses associated with the execution of the strategic transformation
plan announced in March 2023.
Net loss in 2023 was $152.5 million compared to $101.4 million in 2022, and net loss margin was 60.0% compared to 34.0% in 2022.
Adjusted EBITDA loss1 in 2023 was $78.4 million compared to a loss of $60.4 million in 2022, and adjusted EBITDA margin1 declined to (30.9)%
compared to (20.3)% for 2022.
_______________
1 For a reconciliation of each non-GAAP financial measure to its most directly comparable GAAP financial measure, please refer to the reconciliationtables in the section titled “Non-GAAP Financial Measures below.
Strategic Transformation Plan
In 2023, Allbirds delivered strong execution under its strategic transformation plan designed to reignite growth in the coming years, as well as improve
capital efficiency, and drive improved profitability. The Company’s newly appointed CEO Joe Vernachio will be leading the remaining work under thetransformation plan, which focuses on four key areas:

Reignite product and brand: Executing a highly focused brand strategy to drive resonance with the consumer throughfresh, innovative products, as well as more impactful storytelling and marketing.
Optimize United States (U.S.) distribution and retail store profitability: Driving traffic and conversion to our U.S. fleet,
selectively closing Allbirds stores and expanding our third-party wholesale channel. In 2024, the Company expects to close
10-15 U.S. retail store locations.
Evaluate transition of international go-to-market strategy: Transitioning to a distributor model in certain international
markets to grow those regions in a cost- and capital-efficient manner. In the third quarter of 2023, Allbirds transitioned two
regions, Canada and South Korea, and we have subsequently finalized agreements for an additional two regions,
Australasia and Japan.
Improve cost savings and capital efficiency: Tracking to the cost of goods savings and SG&A savings we outlined for 2025,
and optimizing cash.
Balance Sheet Highlights
Allbirds ended the year with $130.0 million of cash and cash equivalents, reflecting a significant improvement in operating cash use versus a year ago.
Operating cash use improved significantly in the fourth quarter and full year 2023 to $4.7 million and $30.2 million, respectively, compared to $8.4
million and $90.6 million, respectively, in 2022. Inventories totaled $57.8 million, a decrease of 50.5% compared to $116.8 million at the end of 2022.
The decrease from the end of 2022 is primarily attributable to fewer units of on hand inventory.
2024 Financial Guidance Targets
Allbirds is providing the following financial guidance targets for 2024. The Company’s outlook for the full year reflects approximately $32-37 million ofnegative impact to revenue associated with the transition from a direct selling model to a distributor model in international markets, as well as the
anticipated closure of 10-15 Allbirds stores in 2024. In order to help investors best understand the financial impact of the Company’s transition to a
distributor model in international markets, Allbirds is providing net revenue guidance for its U.S. and international geographical markets in 2024.
Full Year 2024 Outlook

Net revenue of $190 million to $210 million
U.S. net revenue of $150 million to $165 million, including a $7 million to $9 million impact resulting fromanticipated store closures
International net revenue of $40 million to $45 million, including $25 million to $28 million of impact resulting fromanticipated transitions to a distributor model in certain international markets
Gross margin of 42% to 45%
Adjusted EBITDA loss of $78 million to $63 million

First Quarter 2024 Outlook

Net revenue of $37 million to $42 million
U.S. net revenue of $28 million to $31 million
International net revenue of $9 million to $11 million
Adjusted EBITDA2 loss of $27 million to $23 million.
The Company will provide additional commentary on 2023 business trends during its earnings call.
_______________
2 A reconciliation of these non-GAAP financial measures to corresponding GAAP financial measures is not available on a forward-looking basis
without unreasonable effort as we are currently unable to predict with a reasonable degree of certainty certain expense items that are excluded in
calculating adjusted EBITDA, although it is important to note that these factors could be material to our results computed in accordance with GAAP.
We have provided a reconciliation of GAAP to non-GAAP financial measures in the section titled “Reconciliation of GAAP to Non-GAAP Financial
Measures” for our fourth quarter 2023 and 2022 results included in this press release.
Conference Call Information
Allbirds will host a conference call to discuss the results, followed by Q&A, at 5:00 p.m. Eastern Time today, March 12, 2024. A live webcast and replayof the conference call will be available on the investor relations section of the Allbirds website at https://www.ir.allbirds.com. Information on the
Company’s website is not, and will not be deemed to be, a part of this press release or incorporated into any other filings the Company may make with
the Securities and Exchange Commission. A replay of the webcast will also be archived on the Allbirds website for 12 months.
About Allbirds, Inc.
Dreamed up in New Zealand, Allbirds launched in San Francisco in 2016 with the ethos of using natural materials to create the world’s most
comfortable shoes. With carbon reduction as its north star, Allbirds is paving the way for a more sustainable approach to business through productinnovation, industry collaboration (like open sourcing its carbon footprint calculator) and being the first footwear brand to carbon label all of its
products. www.allbirds.com.
Forward-Looking Statements
This press release and related conference call contain “forward-looking” statements, as the term is defined under federal securities laws, that are
based on management’s beliefs and assumptions and on information currently available to management. All statements other than statements ofhistorical facts, including statements regarding our strategic transformation plan and related efforts, future financial performance, including ourfinancial outlook on financial results and guidance targets, planned transition to a distributor model in certain international markets, anticipateddistributor model arrangements, focus on improving efficiencies and driving profitability, restructuring charges, estimated and/or targeted cost savings,
medium-term financial targets, market position, future results of operations, financial condition, business strategy and plans, reducing the carbon
footprint of our products, materials innovation and new product launches, and objectives of management for future operations are forward-looking
statements. In some cases, you can identify forward-looking statements because they contain words such as “designed,” “objective,” “anticipate,”“believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or“would” or the negative of these words or other similar terms or expressions. Forward-looking statements are subject to numerous assumptions, risks
and uncertainties which could cause actual results or facts to differ materially from those statements expressed or implied in the forward-looking
statements, including, but not limited to: unfavorable economic conditions; our ability to execute our strategic transformation plans, simplification
initiatives or our long-term growth strategy; fluctuations in our operating results; our ability to achieve the financial outlook and guidance targets for the
first quarter of 2024; our ability to complete transitions to a distributor model in certain international markets; our ability to achieve our cost savings
targets by 2025; deteriorating economic conditions, including economic recession, inflation, tax rates, foreign currency exchange rates, or theavailability of capital; impairment of long-lived assets; the strength of our brand; our net losses since inception; the competitive marketplace; ourreliance on technical and materials innovation; our use of sustainable high-quality materials and environmentally friendly manufacturing processes andsupply chain practices; our ability to attract new customers and increase sales to existing customers; the impact of climate change and government
and investor focus on sustainability issues; our ability to anticipate product trends and consumer preferences, including with respect to the productlaunches we have planned for the first half of 2024; breaches of security or privacy of business information; and our ability to forecast consumer
demand. Moreover, we operate in a very competitive and rapidly changing environment in which new risks emerge from time to time. It is not possible
for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination offactors, may cause our actual results or performance to differ materially from those contained in any forward-looking statements we may make.
Further a further discussion of these and other factors that could cause our financial results, performance, and achievements to differ materially fromany results, performance, or achievements anticipated, expressed, or implied by these forward-looking statements is included in the filings we makewith the SEC, including our Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, and future reports we may file with the SEC
from time to time. The forward-looking statements contained in this press release and related conference call relate only to events as of the date statedor, if no date is stated, as of the date of this press release and related conference call. We undertake no obligation to update any forward-looking
statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or theoccurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in or
expressed by, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential
impact of any future acquisitions, mergers, dispositions, joint ventures or investments.
Use of Non-GAAP Financial Measures
This press release and accompanying financial tables include references to adjusted EBITDA and adjusted EBITDA margin, which are non-GAAP
financial measures. We believe that providing these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, andnot in isolation or as substitutes for analysis of our results of operations under GAAP, are useful to investors as they are widely used measures of
performance, and the adjustments we make to these non-GAAP financial measures may provide investors further insight into our profitability andadditional perspectives in comparing our performance to other companies and in comparing our performance over time on a consistent basis. Thesenon-GAAP financial measures should not be considered as alternatives to net loss or net loss margin as calculated and presented in accordance withGAAP.
Adjusted EBITDA is defined as net loss before stock-based compensation expense, including common stock warrant expense, depreciation andamortization expense, impairment expense, restructuring expense (consisting of professional fees, severance payments, and other related charges
from our August 2022 and March 2023 initiatives), non-cash gains or losses on the sales of businesses relating to our March 2023 initiatives, otherincome or expense (consisting of non-cash changes in the fair value of our equity investments, non-cash gains or losses on foreign currency, andnon-cash gains or losses on sales of property and equipment), interest income or expense, and income tax provision or benefit.
Adjusted EBITDA margin is defined as adjusted EBITDA divided by net revenue.
Other companies, including companies in our industry, may calculate these adjusted financial measures differently, which reduces their usefulness ascomparative measures. Because of these limitations, we consider, and investors should consider, these adjusted financial measures together withother operating and financial performance measures presented in accordance with GAAP.
Investor Relations:
ir@allbirds.com
Media Contact:press@allbirds.com
Allbirds, Inc.
Consolidated Statements of Operations and Comprehensive Loss(in thousands, except share, per share amounts, and percentages)(unaudited)Three Months Ended December
31,
2023
Net revenue$

Cost of revenue
Gross profit
Operating expense:
Selling, general, and administrative expense
Marketing expense
Impairment expense
Restructuring expense
Total operating expense
Loss from operations
Loss from sales of businesses
Interest income
Other (expense) income
Loss before provision for income taxes
Income tax benefit (provision)

71,99044,615

Year Ended December 31,

2022$

84,17847,874

2023
$

2022

254,065
149,833$

297,766
168,138

27,37536,304104,232

129,628

41,52814,85027,392
1,243

41,631
16,8153,286
35

174,044
49,042
27,392
6,757

166,736
59,1093,286
782

85,013

61,767257,235

229,913(57,638)
(415)
1,115
(138)

(25,463)
–
126
(254)

(153,003)(2,761)
4,076
(436)

(100,285)–
19
139(57,076)297(25,591)
725(152,124)(334)(100,127)(1,227)Net loss$(56,779)$(24,866)$(152,458)$(101,354)

Net loss per share data:
Net loss per share attributable to common stockholders, basic anddilutedWeighted-average shares used in computing net loss per share
attributable to common stockholders, basic and diluted$(0.37)$(0.17)$(1.01)$(0.68)

153,674,506

149,573,335

151,672,437

148,754,428

Other comprehensive loss:
1,714

Foreign currency translation gain (loss)
Total comprehensive loss$

(55,065)

3,486$(21,380)

Three Months Ended December
31,2023Statements of Operations Data, as a Percentage of Net Revenue:
Net revenue
Cost of revenue
Gross profit
Operating expense:

2022

276
$

(152,182)(4,277)$(105,631)

Year Ended December 31,
2023

2022

100.0%
62.0%

100.0%
56.9%

100.0%
59.0%

100.0%
56.5%

38.0%

43.1%

41.0%

43.5%

Selling, general, and administrative expense
Marketing expense
Impairment expense
Restructuring expense
Total operating expense
Loss from operations
Loss from sales of businesses
Interest income
Other (expense) income
Loss before provision for income taxes
Income tax benefit (provision)
Net loss

57.7%
20.6%
38.1%
1.7%

49.5%
20.0%
3.9%
–%

68.5%
19.3%
10.8%
2.7%

56.0%
19.9%
1.1%
0.3%

118.1%

73.4%

101.2%

77.2%(80.1)%(0.6)%
1.5%(0.2)%(30.2)%–%
0.1%(0.3)%(60.2)%(1.1)%
1.6%(0.2)%(33.7)%
–%
0.0%
0.0%

(79.3)%
0.4%(30.4)%
0.9%(59.9)%(0.1)%(33.6)%(0.4)%(78.9)%(29.5)%(60.0)%(34.0)%

Other comprehensive loss:
Foreign currency translation gain (loss)
Total comprehensive loss

2.4%

4.1%

0.1%

(1.4)%(76.5)%(25.4)%(59.9)%(35.5)%

December 31,
2023

December 31,
2022

$

$

Allbirds, Inc.
Consolidated Balance Sheets(in thousands, except share amounts)(unaudited)

AssetsCurrent assets:
Cash and cash equivalents
Accounts receivable
Inventory
Prepaid expenses and other current assets
Total current assets
Property and equipment–net
Operating lease right-of-use assets
Other assets
Total assets$

130,032
8,188
57,763
16,423

167,136
9,206
116,796
15,796

212,406

308,934

26,08567,085
7,129

54,34091,232
7,858

312,705$

462,364

Liabilities and stockholders' equity
Current liabilities:
Accounts payable
Accrued expenses and other current liabilities
Current lease liabilities
Deferred revenue
Total current liabilities
Noncurrent liabilities:
Noncurrent lease liabilities
Other long-term liabilities

12,24523,448
10,263
4,057

48,60750,01278,731
38

95,583–78,769Total noncurrent liabilities
Total liabilities

5,851
22,987
15,2184,551$

127,376

95,583$

145,595

Commitments and contingencies (Note 12)
Stockholders' equity:
Class A Common stock, $0.0001 par value; 2,000,000,000 shares authorized as of December 31, 2023 and2022; 102,579,222 and 96,768,745 shares issued and outstanding as of December 31, 2023 and 2022,
respectively

10

10Class B Common stock, $0.0001 par value; 200,000,000 shares authorized as of December 31, 2023 and2022; 52,547,761 and 53,137,729 shares issued and outstanding as of December 31, 2023 and 2022,
respectively
Additional paid-in capital
Accumulated other comprehensive loss
Accumulated deficit

5579,848(3,335)(391,199)

5
559,106(3,611)(238,741)

Total stockholders' equity

185,329

316,769$

Total liabilities and stockholders' equity

312,705$

462,364

Allbirds, Inc.
Consolidated Statements of Cash Flows(in thousands)(unaudited)Year Ended December 31,
2023
Cash flows from operating activities:
Net loss
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
Amortization of debt issuance costs
Stock-based compensation
Inventory write-downDeferred taxes
Impairment expense
Realized loss on equity investment
Loss from sales of businesses
Changes in assets and liabilities:
Accounts receivable
Inventory
Prepaid expenses and other current assets
Operating lease right-of-use assets and current and noncurrent lease liabilities
Accounts payable and accrued expenses
Other long-term liabilities

$

2022

(152,458)$(101,354)

21,00549
19,3468,253(474)
27,37484
2,772

14,67949
19,873
14,437
(898)
3,279
–
–

Deferred revenue

1,000
47,529(1,158)2,555(6,706)
38
569

1,605
(24,742)
18,10012,265(37,593)(10,157)(126)

Net cash used in operating activities(30,222)(90,583)(10,870)
166
2,182
810

(31,363)––(929)(7,712)(32,292)

Taxes withheld and paid on employee stock awards

–
–
327
894
(581)

(744)
539
1,201
2,751
(166)

Net cash provided by financing activities

640

3,581

200
(37,094)
167,767(1,515)(120,809)
288,576

Cash flows from investing activities:
Purchase of property and equipment
Proceeds from sale of equity investment
Proceeds from sales of businesses
Changes in security deposits
Net cash used in investing activities
Cash flows from financing activities:
Payments of deferred offering costs
Repayment of non-recourse promissory note
Proceeds from issuance of common stock under the employee stock purchase plan
Proceeds from the exercise of stock options

Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash
Net decrease in cash, cash equivalents, and restricted cash
Cash, cash equivalents, and restricted cash–beginning of period
Cash, cash equivalents, and restricted cash–end of period$

130,673$

167,767

Supplemental disclosures of cash flow information:
Cash paid for interest
Cash paid for taxes
Noncash investing and financing activities:
Purchase of property and equipment included in accounts payableNon-cash exercise of common stock warrants
Stock-based compensation included in capitalized internal-use software
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents

$
$

111
1,785

$
$

88
1,424

$
$
$

–
–
866

$
$
$

601
35
1,199

$

130,032641$

167,136632$

130,673$

167,767

Restricted cash included in prepaid expenses and other current assets
Total cash, cash equivalents, and restricted cash

Allbirds, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures(in thousands, except share, per share amounts, and percentages)(unaudited)
The following tables present a reconciliation of adjusted EBITDA to its most comparable GAAP measure, net loss, and presentation of net loss margin
and adjusted EBITDA margin for the periods indicated:
Three Months Ended December
31,
Net loss$
Add (deduct):
Stock-based compensation expense, including common stock warrant
expenseDepreciation and amortization expense
Impairment expense
Restructuring expense
Loss from sales of businesses
Other expense (income)Interest (income) expense

2023(56,779 )

$

$

3,684
5,789
27,392
1,243
415
138
(1,115 )(297 )

Income tax provision (benefit)
Adjusted EBITDA

2022(24,866 )(19,530 )Year Ended December 31,
2023(152,458 )

$

5,088
4,511
3,286
35
–
254
(126 )(725 )$(12,323 )

19,346
21,05827,392
6,757
2,761(4,076 )436
334$(78,450 )Three Months Ended December
31,
2023

20,02615,754
3,286
782
–
(19 )
(139 )
1,227$(60,437 )Year Ended December 31,

2022
$

2022
(45,370 )$2023

84,178$254,0652022

Net revenue$

71,990$297,766

Net loss
Net loss margin$(56,779 )$(78.9 )%

(24,866 )$(29.5 )%

(152,458 )$(60.0 )%

(101,354 )(34.0 )%

Adjusted EBITDA
Adjusted EBITDA margin$(19,530 )$(27.1 )%

(12,543 )$(14.9 )%

(78,450 )$(30.9 )%

(60,437 )(20.3 )%

Allbirds, Inc.
Net Revenue and Store Count by Primary Geographical Market(in thousands, except for store count)(unaudited)
Net Revenue by Primary Geographical Market
Three Months Ended December
31,2023
United States

2023

2022

$

55,80016,190$65,586
18,592$

191,054
63,011$

229,81467,952$

71,990$84,178$254,065$

297,766

International
Total net revenue

Year Ended December 31,

2022

Store Count by Primary Geographical Market
December31, 2021

March 31,2022

International [1]

23
12

27
12

Total stores

35

39

United States

June 30,
2022

September
30, 2022

December31, 2022

March 31,
2023

32
14

38
13

42
16

42
17

46

51

58

59

June 30,
2023

September
30, 2023

December31, 2023

44
18

45
15

45
15

62

60

60

[1] In the third quarter of 2022, we opened two new international stores and had three store leases expire, resulting in a net reduction of one lease. In

the third quarter of 2023, we transitioned the operations of two stores in Canada and one store in South Korea to unrelated third-party distributors,
resulting in a reduction of three international stores.