Despite failing to ever turn a profit in its six years of operation, Allbirds made a strong Wall Street debut on Nov. 3. Shares surged 90% over the retailer’s $15 initial price to close at $28.64, raising the company’s valuation to approximately $4.1 billion, according to CNBC. Allbirds’ IPO filing plans, released in October, projected a much lower potential valuation of $2.2 billion.
Allbirds lost $14.5 million in 2019 and $25.9 million in 2020, according to documents filed with the SEC, but the brand is counting on continued enthusiasm for sustainably manufactured products as well as comfortable footwear and apparel. The retailer announced its expansion into the activewear category in August 2021.
“We did get exposure to a lot more pockets of capital as a result of the fact that people saw the genuine and authentic leadership that we’re putting forward on ESG,” said Co-founder and Co-CEO Joey Zwillinger in an interview on CNBC’s Squawk Box. “I think why the demand was so great…investors were really attracted by the opportunity to put their capital against great opportunity to create outcomes that were better for the planet.”
Several retailers have recently taken the IPO plunge: Warby Parker made its stock market debut in September 2021, followed by Claire’s in early October. Petco had debuted its IPO in January 2021, and Authentic Brands Group, Mattress Firm and Guitar Center have each prepped for their own IPOs this year.