Sneaker’s latest IPO reports as analysts praise focus on sustainability

Sneakers manufacturer and recent IPO All birds (BIRD) is releasing its third quarter results after Tuesday’s close. Allbirds stock traded lower on Monday.

The San Francisco-based company, which designs shoes for more environmentally conscious customers, reports that the shoe manufacturing industry is trying to bypass supply chain disruptions linked to the pandemic.

Allbirds Earnings

Estimates: Wall Street expects Allbirds to lose 11 cents a share in the quarter, according to FactSet. Revenue is expected to reach $ 62 million.

Results: Due after closing on Tuesday.

Bird stock

The Allbirds stock fell 4.7% to 18.82 in the scholarship today. This is a historic closing low, but still above the early November IPO price of $ 15.

The stocks have a very low composite rating of 22.

With the Allbirds stock, Nike (NKE) increased 1.1% to 169.87. Stocks were trying to erase a 174.48 point of purchase of a cup bottom.

Adidas (ADDYY) edged up 0.3%. crocs (CROX) got rid of the first losses and increased by 0.3%. Skechers (SKX) also reversed higher, trading up 1.1%.

Waiting (ONON), the running shoe maker backed by tennis star Roger Federer, fell 2%. This company, another recent IPO, income reported earlier this month.

Allbirds, founded in 2015, is best known for its Wool Runner shoes. The company has tried to position itself as a more sustainable shoemaker, making products from tree fibers, sugar cane, crab shells and other materials. In doing so, he hopes to attract younger consumers who pay more attention to how and where their products are made.

Still, in Allbirds’ IPO prospectus, the company noted that its shoes are largely made by a handful of sellers in Korea and Vietnam. Closures in Vietnam earlier this year have hit sales for Nike, as good as quarterly results for Crocs. Factories in Vietnam have since reopened, but are hampered by labor shortages.

Allbirds also said finding suppliers who meet their environmental standards can be an “involved process.”

Analysts like Allbirds Stock

Analysts have expressed optimism about Allbirds’ stock, even as shoe and apparel makers navigate Covid restrictions overseas and safeguards along the supply chain.

“Allbirds is a leading footwear company with a unique competitive divide given its focus on sustainability,” BofA analysts said Monday in a research note when throwing coverage on Allbirds.

They gave the Allbirds stock a buy rating and a price target of $ 23.

“With an assisted brand awareness of just 11% in the United States, we see an opportunity for its development of innovative and sustainable products to capture market share in the global athletic footwear and apparel market of 1.8 trillion. dollars, “analysts continued.

William Blair analysts also found a lot to like. An introductory rating on the Allbirds stock on Monday gave the stock an outperformance rating and noted the high rate of Allbirds loyal customers. Blair analysts described Allbirds as a company that derives most of its sales from digital channels, with the potential to gain from opening more physical retail stores.

“Store opening is expected to drive new customer acquisition while increasing digital sales and resulting in improved lifetime value,” they said.


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