Footwear brand Allbirds became the latest retailer to pivot its focus from physical stores to online retail on Wednesday in a bid to enhance profitability.

The company announced it will close its remaining company-owned stores in the United States by the end of February, reallocating resources toward e-commerce and partnership channels.

Allbirds CEO Joe Vernachio stated in a release, "This is a pivotal step in Allbirds' transformation strategy to achieve profitable growth. Over the past two years, we have strategically reduced our physical footprint. By closing these remaining unprofitable locations, we are taking decisive action to lower costs and ensure the long-term health of the business."

Allbirds indicated it will continue to operate two outlet stores in the US and maintain two company-owned stores in London.

Originating in Silicon Valley, this sustainable footwear company expanded rapidly during the direct-to-consumer boom and completed its initial public offering in 2021. At that time, like many DTC brands, it sought to build a customer base through physical retail, hoping store openings would strengthen its balance sheet.

Today, amid rising rents, declining appeal of brick-and-mortar retail, and the growing primacy of digitally-native models, Allbirds and other DTC companies are realigning their strategic focus. The sneaker maker had previously announced plans to phase out its national network of stores.

In its third-quarter earnings report released in November, the company reported a 23.3% year-over-year decline in net revenue, primarily attributed to international distributor adjustments and the closure of physical stores. Net revenue from US stores fell approximately 20% compared to the prior year.

Allbirds currently holds a market capitalization of $32 million, with its stock price having plummeted more than 80% over the past two years.