Allbirds, Which Produces Most of Its Shoes in Vietnam, Is Tightening Inventory and Adjusting Prices Amid Trump’s Tariff Trade War

Allbirds has its sights set to the second half of 2025 as it expects new launches to bring in more customers and boost sales. And according to Allbirds chief executive officer Joe Vernachio, not even Trump’s tariff trade war can stop him from executing his plan. “While the current tariff landscape adds complexity, our team is well equipped to navigate these dynamic conditions, drawing on years of industry experience,” Vernachio said on the company’s first quarter earnings call on Thursday evening. The CEO added that while most of the company’s manufacturing is based in Vietnam, Allbirds is “proactively managing” potential cost of goods pressure through tighter inventory buys and ongoing evaluation of future price opportunities. At the same time, Allbirds’ growing international distributor business helps mitigate exposure to U.S. tariff impacts, Vernachio noted. Assuming a continuation of the 10 percent incremental tariff on Vietnam goods following the 90-day pause, the company said it still expects to deliver gross margin in the mid-40s for full year 2025. Annie Mitchell, chief financial officer at Allbirds, elaborated on what the company is doing in terms of tariff mitigation. “We’ve reduced our initial inventory purchases for fall ’25 as well as our buy plans for spring ’26, where we will

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