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Sustainable shoe maker Allbirds files for IPO and reveals continued losses

Allbirds shoes consist of wool, and the laces consist of recycled plastic bottles.

The sustainable shoe maker Allbirds said Tuesday that it has lost money since its inception and expects it will continue to be unprofitable for the foreseeable future, as it prepares to debut on Wall Street through an initial public offering.

Allbirds said it has applied to list its Class A common stock on the Nasdaq exchange, under the ticker symbol “BIRD.”

The news follows direct-to-consumer darling Warby Parker earlier this month revealing in an SEC filing that it has seen rising sales, but also widening losses over the past three years. The eyeglass maker is preparing to go public, but through a direct listing.

Allbirds is hoping to cash in on increasing demand, especially among younger shoppers, for products that are sustainably sourced. It launched an activewear line earlier this month, expanding its product assortment beyond its popular wool sneakers.

But the company has yet to turn a profit, which could worry potential investors.

Allbirds’ net loss totaled $14.5 million in 2019 and grew to $25.9 million in 2020, according to documents filed with the Securities and Exchange Commission. For the six-month period ended June 30, Allbirds reported a loss of $21.1 million.

Its revenue, meantime, has grown to $219.3 million in 2020 from $193.7 million in 2019. For the six-month period ended June 30, revenue was $117.5 million.

Digital sales totaled $194.6 million, representing a whopping 89% of total sales. More people shopped online last year due to the Covid pandemic, and Allbirds has been a beneficiary of the shift toward comfort and casual dressing.

The company counted 27 locations around the world as of June 30. But it plans to make a much bigger push in bricks-and-mortar retail in the future. Allbirds noted it is in the “early phase of a ramp towards hundreds of potential locations in the future.”

This story is developing. Please check back for updates.

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