Sneaker maker Allbirds Inc. has filed for an initial public offering as the company said it aims to benefit from physical retail’s recovery from the Covid-19 pandemic.
The San Francisco-based startup, known for its eco-friendly sneakers, has seen its shoes grow in popularity among people working in the tech industry. Allbirds had 27 stores as of June 30, including in New York City, Shanghai and Berlin, it said Tuesday. In 2020, the company’s digital channel represented 89% of sales, according to a securities filing.
The company says it is a vertical retailer, meaning it can control its own inventory and product flow. Allbirds said it plans to increase its store fleet, expand within existing international markets and grow its digital efforts.
Allbirds posted a net loss of $25.86 million for 2020, wider than the $14.53 million loss in the prior year as it booked higher costs associated with head count, operations and digital advertising. Net revenue rose to $219.3 million from $193.7 million, driven by increases in average order value and the company’s digital sales.
The company said the revenue growth was partially offset by a 25% decline in its physical-retail channel largely due to store closures during the pandemic. Store reopenings have improved its performance, but 2021 same-store sales as of June 30 remained below 2019 levels, Allbirds said.