Allbirds has filed for an IPO, with plans to sell 19.2 million shares of its stock at $12 to $14 per share. At the higher price, the sustainable footwear and apparel company could achieve a valuation as high as $2.2 billion. The company has not yet set a date for the IPO.
The retailer, founded in 2015 as an internet-only seller of wool footwear, expanded into apparel in August 2019 with the addition of sustainably manufactured socks and added an activewear category in August 2021. Allbirds, which currently operates 27 brick-and-mortar stores, says it has sold more than 8 million pairs of shoes to 4 million customers around the world, including 3.3 million in the U.S. The company claims in its SEC filing that the carbon footprint for each pair of shoes is approximately 30% less than for a standard pair of sneakers due to its use of renewable natural materials and responsible manufacturing.
Despite impressive sales, Allbirds generated net losses of $14.5 million in 2019 and $25.9 million in 2020. Additionally, CNBC reported that the company revealed its net loss for the quarter that ended Sept. 30, 2021 would be $15 million to $18 million, compared with a loss of $7 million for the same period the previous year. When Allbirds announced its intention to go public in August 2021, the company said it had yet to turn a profit.
The retailer’s SEC filing laid out its business and sustainability philosophy: “We harness nature to find incredible innovations that create differentiated products so that our customers do not have to compromise between looking good, feeling good, and doing good for the planet. Our strength in development of naturally derived materials serves as a competitive advantage, as we create premium products that are sustainable and that we believe are better than synthetic alternatives across comfort, style, and performance.”