Eco-friendly shoemaker Allbirds posts strong sales for its first-ever earnings — but needs a bigger fan base to potentially turn a profit
![Eucalyptus-pulp shoes in the wild [Gary John Norman/ The Image Bank via Getty Images]](https://cdn.robinhood.com/static_content/mwphzyq69oso/en-US/assets/files/34cHUzFAyLoXOiiFJXVGuV_1_GettyImages-149028451.jpg)
![Eucalyptus-pulp shoes in the wild [Gary John Norman/ The Image Bank via Getty Images]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
Wool shoes and hydro flasks… Throw in a Patagonia, and you’ve got yourself a tech uniform. Allbirds’ eco-friendly shoes have become a Silicon Valley staple. Think: $98 kicks made from wool, sugarcane, and South African eucalyptus pulp. Shares of the direct-to-consumer company have fallen 33% since going public last month. Allbirds’ first public earnings report didn’t wow investors, and the stock dropped 6% after hours.
- Step up: Allbirds' quarterly sales rose 33%, to $63M, thanks to strong demand for its new athleisure clothing line and fresh sneaker styles (like limited-edition Runner Fluffs).
- Step down: Allbirds’ loss nearly doubled from last year, to $14M, as it splurged to expand its brick-and-mortar stores to 31 locations.
Plastic-bottle shoestrings… and carbon-negative soles. Allbirds has put sustainability at the center of its business, attracting eco-conscious Zillennials. While the average pair of sneakers creates 12 kilograms of CO2 emissions, Allbirds claims its shoes produce only 7. Its ESG pledges include creating 100% renewable energy for its production facilities by 2025.
- Younger consumers are almost 2X as likely to consider ESG issues when making purchasing decisions, compared to consumers over the age of 38.
- That’s why companies like Beyond Meat, Patagonia, Tom’s, and Allbirds have put eco-friendly messaging and materials at their core.
Brand love doesn’t equal brand permanence… Last year, more than half of Allbirds' sales were from repeat customers. But since its expenses are growing along with losses, it may need to grow beyond that core audience to survive long term. Values-driven companies like Impossible Foods and Beyond Meat have seen sales slump recently, and even OG sustainable shoe brand Toms has had to revamp its image to broaden its appeal.