Has the latest sneaker bubble officially burst?

·28 min·2 clips

Allbirds sold for $39 million last week, a sharp drop from its $4 billion valuation in 2020.

The episode begins with host Gabby Barco introducing the topic by referencing Allbirds' recent sale for $39 million, a sharp decline from its $4 billion valuation in 2020. She is joined by senior reporter Julia Waldo, who covers the sneaker space. Julia explains that the sneaker market saw huge growth during the early pandemic as people took up running, benefiting both legacy players like Nike and newer companies like Hoka and On. The discussion then focuses on Allbirds' struggles, including a 20% sales drop and $77 million in losses, attributed to over-innovation and failed retail expansion. Julia notes that Allbirds tried to make too many shoe models and apparel, losing touch with core customers. The conversation shifts to disruptors On and Hoka, which capitalized on running trends but are now experiencing growth deceleration, with On's sales growth dropping from 95.5% to 18.5%. External factors like tariffs are highlighted, with Julia citing that 99% of U.S. footwear is made abroad, creating cost pressures. She also mentions synthetic rubber price issues due to geopolitical conflicts. Legacy brands like New Balance are discussed, with sales up 19% to $9.2 billion, partly due to Nike's pullback from wholesale. Brooks Running is noted for its ninth consecutive year of growth, attributed to listening to customer feedback, as seen in the Glycerin Flex shoe development. Nike's turnaround efforts are briefly covered, including a shift to grouping products by sport rather than gender. The episode wraps with Julia identifying A6 as an under-the-radar brand gaining market share through performance running and popularity on resale sites like StockX. The hosts reflect on the crowded and competitive sneaker landscape, emphasizing the need for brands to adapt without losing core identity.

As heard by us

Allbirds' sale anchors a concise look at sneaker competition, incumbent strength and material-cost pressure.

Allbirds gives this single-episode review a clean business hook: a once-$4 billion sneaker brand sold for $39 million to American Exchange Group.

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Why you'd press play

Want a clear read on the sneaker market, from Allbirds' $39 million sale to why rubber prices are adding pressure?

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