Allbirds shoes consist of wool and laces consist of recycled plastic bottles.
Sustainable shoe maker Allbirds said Tuesday it has lost money since its inception and expects it to remain unprofitable for the foreseeable future as it prepares to debut on Wall Street through an initial public offering.
Allbirds said it applied for a listing of its Class A common shares on the Nasdaq Stock Exchange, under the symbol “BIRD.”
The news follows Warby Parker, a direct consumer darling, earlier this month, revealing in an SEC filing that it has seen sales rise, but it has also seen losses over the past three years. The eyewear maker is preparing to go public, but through a direct list.
Allbirds hopes to meet the growing demand, especially among younger buyers, for products of sustainable origin. It launched an active clothing line earlier this month, expanding its product range beyond its popular wool slippers.
But the company has yet to make a profit, which could worry potential investors.
Allbirds ’net loss amounted to $ 14.5 million in 2019 and grew to $ 25.9 million in 2020, according to documents submitted to the Securities and Exchange Commission. During the six-month period ended June 30, Allbirds reported a loss of $ 21.1 million.
Meanwhile, its revenue has grown to $ 219.3 million in 2020 from $ 193.7 million in 2019. During the six-month period ended June 30, revenue was $ 117.5 million.
Digital sales totaled $ 194.6 million, accounting for a whopping 89% of total sales. Last year there were more people shopping online because of the Covid pandemic, and Allbirds has been a beneficiary of the shift towards comfort and casual wear.
The company had 27 locations worldwide as of June 30th. But it plans to make a much bigger boost to brick and mortar retail in the future. Allbirds noted that it is in the “initial phase of a ramp to hundreds of potential sites in the future.”
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