Allbirds reports third quarter earnings, stock trades lower

Allbirds stock dropped 4.7% to 18.82 which is an all-time closing low, but still above early November IPO price of $15

Sneaker-maker and recent IPO Allbirds reports Q3 earnings after the close on Tuesday. Allbirds stock traded lower on Monday.

The company, which designs footwear aimed at more environmentally-conscious customers, reports as the shoe manufacturing industry attempts to find its way around pandemic-related supply-chain disruptions.

Wall Street expects Allbirds to shed 11 cents per share during the quarter, according to FactSet. Revenue is expected to be $62 million.

Allbirds stock dropped 4.7% to 18.82 today. That’s an all-time closing low, but still above early November IPO price of $15.

Along with Allbirds stock, Nike advanced 1.1% to 169.87. Adidas inched up 0.3%. Crocs shook off early losses and tilted 0.3% higher. Skechers also reversed higher, trading up 1.1%.

On Holding, the running-shoe maker declined 2%. The company, another recent IPO, reported earnings earlier this month.

Allbirds is best known for its Wool Runner shoes. The company has tried to position itself as a more sustainable shoemaker, making products from tree fibre, sugar cane, crab shells and other materials. In doing so, it hopes to capture younger consumers who pay more attention to how and where their products are made.

Still, in the Allbirds stock IPO prospectus, the company noted that its footwear is largely made by a handful of vendors in Korea and Vietnam.

Shutdowns in Vietnam earlier this year have hit sales for Nike, as well as quarterly results for Crocs. Factories in Vietnam have since reopened, but are hindered by labour shortages.

Allbirds also said that finding suppliers that meet its environmental standards can be an ‘involved process.’

Analysts have expressed optimism on Allbirds stock, even as footwear and clothing manufacturers navigate Covid restrictions abroad and backups along the supply chain.

Allbirds is a leading footwear company with a unique competitive moat given its focus on sustainability, BofA analysts said in a research note on Monday.

With an aided brand awareness of only 11% in the US, we see opportunity for its innovative, sustainable product development to capture market share in the $1.8 trillion global athletic footwear and apparel market, the analysts continued.