Allbirds Files for IPO Amid Ongoing Losses

Sustainable shoemaker Allbirds said on Tuesday (Aug. 31) that it plans to move forward with its initial public offering (IPO) of Class A common stock on the Nasdaq exchange under the ticker symbol BIRD, despite the fact that it’s lost money since its inception and will continue to be unprofitable.

Allbirds is “hoping to cash in on increasing demand, especially among younger shoppers, for products that are sustainably sourced,” according to a CNBC report. The company debuted an activewear line this month to pair with its wool sneakers.

The company lost $21.1 million in the first half of 2021 after losses of $25.9 million in 2020 and $14.5 million in 2019, according to documents filed with the Securities and Exchange Commission (SEC). Allbirds’ revenue for the first half of 2021 was $117.5 million after reaching $193.7 million in 2019 and $219.3 million last year, with digital sales representing 89 percent of total sales at $194.6 million.

Allbirds had 27 stores through the first half of 2021 and expects to significantly boost that total, saying that the company is in the “early phase of a ramp toward hundreds of potential locations.” Repeat customers comprised 53 percent of Allbirds’ sales in 2020, compared to 46 percent the year prior.

Last year, Allbirds raised $100 million in Series E funding, which reportedly valued the company at $1.7 billion.

Related: Allbirds Unveils Atlanta Shoe and Apparel Store

Allbirds opened its 30th location in Atlanta this week. The 3,000-square-foot store includes a retail offering and community center, and joins other locations across North America, Asia and Europe.

The San Francisco-based retailer has raised more than $200 million since 2016.

Co-founder Joey Zwillinger said the money Allbirds raised last year would be used to build stores, add products and fund direct-to-consumer sales operations.

“Business can be a force for positive change, and this additional capital will allow us to further our mission of bringing more sustainable products to people around the world,” he said at the time of the venture capital fundraising round.