Allbirds

Last updated

Allbirds, Inc.
Company type Public
Nasdaq:  BIRD (Class A)
IndustryFootwear
Founded2016;8 years ago (2016)
Founders
Headquarters San Francisco, California, US
Number of locations
58 (2022)
RevenueIncrease2.svg US$298 million (2022)
Decrease2.svgUS$−100 million (2022)
Decrease2.svgUS$−101 million (2022)
Total assets Decrease2.svgUS$462 million (2022)
Total equity Decrease2.svgUS$317 million (2022)
Number of employees
c. 1,000 (2022)
Website allbirds.com
Footnotes /references
[1]

Allbirds, Inc. is a New Zealand and American company that sells footwear and apparel. Allbirds is headquartered in San Francisco, California. The footwear company mostly uses a direct-to-consumer model in conjunction with distribution via select additional stores in addition to select Nordstrom and Dick's Sporting Goods locations.

Contents

History

US Congressman Jared Huffman speaking at Allbirds in San Francisco in 2020 Jared Huffman at Allbirds 01.jpg
US Congressman Jared Huffman speaking at Allbirds in San Francisco in 2020

Founding (2014 - 2020)

Allbirds co-founder Tim Brown got the idea for the company while he was vice captain of the New Zealand football team. [2] He had previously attended business school and used to make leather shoes for friends, but was aware of how uncomfortable they were. [3] In 2014, he received a research grant from the New Zealand wool industry to engineer a sneaker. He then launched his idea on Kickstarter, raising US$119,000 in five days. [4] [5] After launching on Kickstarter, Brown teamed up with Joey Zwillinger, a biotech engineer and renewable materials expert. They began developing their process and officially launched Allbirds in March 2016. [6] [4] The name Allbirds is a reference to New Zealand having almost no native land mammals, being a land of "all birds". [7]

The company launched with one product, the Wool Runners casual sneakers. [8] During their first year in business, the company raised US$7.25 million from investors including Maveron, Lerer Hippeau Ventures, and other firms. [9] [10] Bloomberg's Jordyn Holman and Matthew Townsend credit articles in well-known publications like Time and The New York Times in 2016 and 2017 respectively are credited with granting the company early publicity victories. [11]

The company received a B Corporation score of 81.9 in 2016, earning it certification. The company was re-evaluated in 2020 and received an 89.4. [12] [ better source needed ]

In December 2017, Allbirds sued Steve Madden, alleging that the company's Traveler shoes look nearly identical to its Wool Runners. [13] Similarly, in November 2019, Zwillinger accused Amazon of stealing the design of one of its shoes. [14]

As of 2017, the company had 50 employees in their headquarters in San Francisco, US; 40 employees at its warehouse in Nashville, US; and 350 contractors in a factory in South Korea. [3] In the end of 2017 the company launched in Australia. [15] In October 2018, the company raised US$50 million in Series C funding, bringing its total valuation to US$1.4 billion. [16] The company also expanded into other footwear, including running shoes and flip flops, which expanded into athleisure in collaboration with Outdoor Voices and Nordstrom. [17] [18] Continuing in May 2020, Allbirds announced a partnership with Adidas. [19]

The company began to offer its shoes to brick and mortar stores in the United States in 2017. [20] The company opened its first store in the United Kingdom on 17 October 2018 in London's Covent Garden. [21] By 2020, the company raised US$100 million in Series E funding, and had 21 retail stores globally. [22]

2020s - Present

Public offering and subsequent changes

The company went public on the Nasdaq on 3 November 2021 under the ticker symbol BIRD at a price between US$12-US$14. [23] That same year, the company dropped a line claiming to be "the first 'sustainable' IPO" from its listing due to pressure from the Securities and Exchange Commission. [24] A month before its IPO, the company reduced references to "sustainability principles and objectives" by half. [25] The year prior, the company was at a loss of US$25.9 million on a US$219 million revenue, which Zwillinger claimed was in pursuit of a sustainable business model. [26] In this time, the company was leaning further into its brand as sustainable by collaborating with Adidas to create a sneaker "that promises to have almost no carbon footprint" and by focusing on environmental impact in its ads. [11]

By 2022, the company began to decline in annual sales according to a GlobalData consumer panel,[ citation needed ] as the brand became seen as part of a style of 2010s Silicon Valley attire and its shoes' lack of durability became better known. [27] Other brands, such as Atoms and Veja, were claimed to be taking some of Allbirds' market share as early as 2020 in a Wall Street Journal article by Jacob Gallagher. [28] The 2022 release of the Tree Flyer marked the end of a period of experimentation with the company's offerings, including leggings, jackets, and dresses, which were unpopular with its customer-base. Complaints about the shoes' lack of durability increased, and a division between the company's co-CEOs over consumer audience visions emerged. Brown believed that younger customers would drive sales, which conflicted with Zwillinger, leading to Zwillinger being named sole CEO, putting Brown as chief Innovation officer. The company thereafter returned to a primary focus on sustainable shoes. [29] [30] To recover from the loss in sales and investor confidence, the company also began to sell their products at brick and mortar Nordstrom and Dick's Sporting Goods stores between April and June of 2022. [31]

Closing out in 2023, the IPO traded at 10% of its IPO price. [32] Chief financial officer Mike Bufano stepped down on 9 March 2023, being succeeded by Annie Mitchell after 24 April 2023. [33] The company began to downsize plans to open more physical stores during this time. [34] On 8 April 2024, the company received a non-compliance notice from the Nasdaq for its share price being valued at $1 for 30 days straight. [35]

On 12 March 2024, Zwillinger was replaced by prior Allbirds Chief Operating Officer Joe Vernachio as CEO. [36] [37] Earlier in the year, the company promoted Kelly Olmstead to chief marketing officer and recruited Adrian Nyman as chief design officer. [38] [39] In May 2024, Aileen Lerch, who had previously published spreadsheet data detailing the company's sustainability data, had promised further transparency and work through Carbonfact, as well as details on a new shoe called M0.0nshot. [40] [41]

Sustainability and public reception

The company claims to keep its products as eco-friendly as possible, using materials such as merino wool and eucalyptus, and is a certified B Corporation. [42] [10] [43] Other shoe components, such as the laces and insoles, are made from recycled plastic bottles, castor beans, plant starch, and wood pulp, and Tencel. In 2018, shoe manufacturing occurred in Shenzen, China. [44]

Prior to its initial public offering, the company raised over US$200 million. [45] Forbes contributor David Trainer believed the company was overvalued at US$2 billion, instead suggesting US$119 million due to market competition and difficulties in business scaling. [46]

According to The Wall Street Journal and The New York Times, Allbirds initially gained some popularity among tech industry professionals, particularly in Silicon Valley. The brand's minimalist, logo-free design and eco-friendly wool fabric have resonated with the tech community, leading to widespread adoption of Allbirds as a sort of unofficial uniform among "tech bros." [3] [28]

In 2018, New Zealand Prime Minister Jacinda Ardern gifted Australian Prime Minister Malcolm Turnbull a pair of Allbirds sneakers during a state visit to Australia. [47] After their announcement in 2018, actor Leonardo DiCaprio pledged investment in the company's Zeffers sandals. [48] [21]

Former United States President Barack Obama was has repeatedly been documented as wearing the shoes by fashion magazines. A 2019 article in Esquire made positive notice of him wearing a pair at a basketball game. [49] In 2020, an article in men's magazine GQ by Cam Wolf criticized his wearing them while recording a podcast as "Zoom Formal." [50]

A New Yorker article by Rachel Syme claimed that the shoes, "cannot really be categorized as ugly footwear, because the idea behind them is not proud unstylishness but technical perfection," linking it to a trend towards comfortwear in professional jobs, namely in technology, as well as a form of conspicuous consumption. [51] Similarly, New York Times critic Jon Caramanica criticized the shoes for being "studiously unstylish." [52]

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References

  1. ↑ "Allbirds, Inc. 2022 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. 10 March 2023.
  2. ↑ "We tried 'the world's most comfortable shoes' to see if they're as great as everyone says they are". Business Insider. Retrieved 3 November 2017.
  3. 1 2 3 Bowles, Nellie (11 August 2017). "To Fit Into Silicon Valley, Wear These Wool Shoes". The New York Times . ISSN   0362-4331 . Retrieved 19 October 2017.
  4. 1 2 "Allbirds is Shaking Up the Sneaker Market With a Pair of Wool Shoes". Observer . 19 April 2016. Retrieved 7 February 2017.
  5. ↑ "The World's Most Comfortable Shoes Are Made of Super-Soft Wool". Time . Retrieved 7 February 2017.
  6. ↑ Coscarelli, Alyssa (27 December 2016). "The Comfiest Sneakers Ever Aren't What You'd Expect". Refinery29 . Retrieved 7 February 2017.
  7. ↑ Huddleston, Tom Jr. (18 December 2018). "How Allbirds went from Silicon Valley fashion staple to a $1.4 billion sneaker start-up". CNBC. Retrieved 1 February 2021.
  8. ↑ Vella, Matt (1 March 2016). "The World's Most Comfortable Shoes Are Made of Super-Soft Wool". Time. Retrieved 4 December 2020.
  9. ↑ Roof, Katie (7 September 2016). "Allbirds raises $7.25 million, unveils new shoe colors". TechCrunch . Retrieved 7 February 2017.
  10. 1 2 Findling, Deborah (1 January 2017). "This eco-friendly sneaker is attracting celebrities without the benefit of a big brand name". CNBC . Retrieved 7 February 2017.
  11. 1 2 Holman, Jordyn; Townsend, Matthew (19 February 2021). "Can Allbirds Live Up to Its $1 Billion Valuation?". Bloomberg.com. Retrieved 11 June 2024.
  12. ↑ "Allbirds, Inc". B Corporation .
  13. ↑ Spellings, Sarah (13 December 2017). "Steve Madden Sued by Sustainable Start-up". The Cut . Retrieved 5 August 2018.
  14. ↑ Holmes, Aaron (20 November 2019). "Allbirds cofounder calls out Amazon for its knockoff shoes that cost way less, calling them 'algorithmically inspired'". Business Insider . Retrieved 9 June 2024.
  15. ↑ Farra, Emily. "Allbirds expands to Australia, eyes further global markets for 2018". nzherald. Retrieved 22 December 2017.
  16. ↑ Copeland, Rob (11 October 2018). "Trendy Sneaker Startup Allbirds Laces Up $1.4 Billion Valuation". Wall Street Journal. ISSN   0099-9660 . Retrieved 16 October 2018.
  17. ↑ LeSavage, Halie (1 August 2018). "Allbirds Just Released Its First Sandals". Glamour. Glamour. Retrieved 4 December 2020.
  18. ↑ Verry, Peter (28 April 2020). "Allbirds Is Now Making Running Shoes". Footwear News. Footwear News. Retrieved 4 December 2020.
  19. ↑ Farra, Emily (28 May 2020). "Adidas and Allbirds Are Joining Forces—And Rewriting the Rules of Competition". Vogue. Retrieved 19 October 2020.
  20. ↑ Pisani, Joseph (8 October 2019). "Allbirds, a shoe brand born online, to double stores". The Seattle Times . Retrieved 9 June 2024.
  21. 1 2 Taylor, Alison (16 October 2018). "Allbirds' 'almost nondescript' brand of footwear lands in UK". The Guardian. ISSN   0261-3077 . Retrieved 9 June 2024.
  22. ↑ "Allbirds Closes $100M Series E to Continue Growth and Further Sustainable Mission". Business Wire . 28 September 2020. Retrieved 9 June 2024.
  23. ↑ Thomas, Lauren (25 October 2021). "Allbirds targets a more than $2 billion valuation in upcoming IPO". CNBC. Retrieved 26 October 2021.
  24. ↑ Megaw, Nicholas; Palma, Stefania; Mann, Jyoti (7 November 2021). "Allbirds dropped 'sustainable' claim from IPO after SEC objection". Financial Times . Retrieved 9 June 2024.
  25. ↑ Magaw, Nicholas; Talman, Kristen (5 October 2021). "Allbirds walks back 'sustainable IPO' claims ahead of market debut". Financial Times . Retrieved 9 June 2024.
  26. ↑ Debter, Lauren (3 November 2021). "Allbirds Valued At Over $4 Billion After Stock Surges In IPO". Forbes . Retrieved 9 June 2024.
  27. ↑ Waters, Jamie (24 December 2022). "Allbirds Were the Tech Bro 'It' Shoe. Then the Tech Bros Moved On". The Wall Street Journal . Retrieved 9 June 2024.
  28. 1 2 Gallagher, Jacob (10 November 2020). "How Allbirds Became Silicon Valley's Favorite Sneaker". WSJ. Retrieved 9 June 2024.
  29. ↑ Kapner, Suzanne (16 July 2023). "How Allbirds Lost Its Way". WSJ. The Wall Street Journal . Retrieved 9 June 2024.
  30. ↑ Kapner, Suzanne; Mendoza, Jessica (3 August 2023). "How Allbirds Lost Its Footing". The Journal. WSJ (This source is a podcast.). The Wall Street Journal . Retrieved 9 June 2024.
  31. ↑ Thomas, Lauren. "Allbirds to start selling its shoes in select Nordstrom department stores". CNBC. Retrieved 13 December 2022.
  32. ↑ Petro, Greg. "Footwear Sensation Allbirds' Second Chance". Forbes. Retrieved 9 June 2024.
  33. ↑ "Allbirds Appoints Annie Mitchell as Chief Financial Officer". Allbirds. 9 March 2023.
  34. ↑ Jansen, Caroline (10 March 2023). "Allbirds CFO exits as the brand pulls back on store openings". Retail Dive . Retrieved 9 June 2024.
  35. ↑ Rogelberg, Sasha (11 April 2024). "Nasdaq just gave former unicorn Allbirds a 6-month warning to raise its stock price or risk getting booted—experts say to look at its B Corp status". Fortune . Retrieved 9 June 2024.
  36. ↑ "Allbirds Names COO and Industry Veteran Joe Vernachio as Chief Executive Officer". Allbirds. 12 March 2024.
  37. ↑ Salpini, Cara (13 March 2024). "Allbirds taps new CEO, plans store closures". Retail Dive . Retrieved 9 June 2024.
  38. ↑ Salpini, Cara (18 January 2024). "Allbirds looks to sports veterans for chief marketing, design roles". Retail Dive . Retrieved 9 June 2024.
  39. ↑ "Allbirds Announces Executive Leadership Appointments". Allbirds. 17 January 2024.
  40. ↑ Clancy, Heather (20 May 2024). "Allbirds keeps 'nerdy' approach to emissions at the heart of rescue plan | GreenBiz". GreenBiz. Retrieved 9 June 2024.
  41. ↑ "M0.0NSHOT: The World's First Net Zero Carbon Shoe". Allbirds. 27 June 2023.
  42. ↑ Marikar, Sheila (September 21, 2020). "Allbirds is stepping up for the planet—by treading lightly on it". Fortune . Archived from the original on October 11, 2020. Retrieved October 11, 2020.
  43. ↑ "These Sneakers Are Affordable, Sustainable, and Genuinely Stylish". Esquire . 2 March 2017. Retrieved 30 March 2017.
  44. ↑ Heller, Nathan (19 March 2018). "When Your Shoes are Made of Wood Pulp". The New Yorker . ISSN   0028-792X . Retrieved 11 June 2024.
  45. ↑ Sorkin, Andrew Ross; Karaian, Jason; Kessler, Sarah; Merced, Michael J. de la; Hirsch, Lauren; Livni, Ephrat (28 April 2021). "Consumer Brands Eye Public Markets". The New York Times. ISSN   0362-4331 . Retrieved 9 June 2024.
  46. ↑ Trainer, David (5 October 2021). "Allbirds Is Already Overvalued At Expected IPO Valuation". Forbes. Retrieved 9 June 2024.
  47. ↑ "PM Ardern gifts Turnbull family 'All Birds'". NZ Herald. 31 May 2023. Retrieved 31 May 2023.
  48. ↑ Weinberg, Lindsay (1 August 2018). "Leonardo DiCaprio Invests in Eco-Friendly Shoe Brand Allbirds". The Hollywood Reporter. Retrieved 9 June 2024.
  49. ↑ Flammia, Christine (22 February 2019). "The $95 Sneakers Barack Obama Wore to the Duke-UNC Game". Esquire. Retrieved 9 June 2024.
  50. ↑ Wolf, Cam (29 July 2020). "Barack Obama Keeps Wearing Silicon Valley's Favorite Shoes". GQ. Retrieved 9 June 2024.
  51. ↑ Syme, Rachel (12 November 2018). "The Algorithmic Emptiness of Allbirds Shoes". The New Yorker. ISSN   0028-792X . Retrieved 9 June 2024.
  52. ↑ Caramanica, Jon (2 January 2019). "How to Think About Curiously Fashionable Footwear". The New York Times. ISSN   0362-4331 . Retrieved 9 June 2024.
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