The firm’s digital sales grew 42% YoY in 2019, but just 21% in 2020. online shoe sales growth, is slowing quickly. Sources: New Constructs, LLC and company filingsĪllbirds’ digital sales growth, while above U.S. Our IPO research aims to provide investors with more reliable fundamental research. Allbirds losses will only get worse as it heavily invests in a costly brick-and-mortar strategy to complement its digital strategy.Īlso, ESG investors shouldn’t overlook Allbirds’ poor corporate governance. While Allbirds is a brand known for its sustainability and eco-friendly operations, Allbirds is struggling to scale its business as revenue from new customers declined year-over-year in 2020 and the company hasn’t ever been profitable. We think the stock is worth as little as $119 million, as it faces steep competition from established companies such as Nike (NKE), Adidas (ADDYY), and Tommy Hilfiger, among others. In our view, Allbirds is not worth anywhere near $2 billion, a valuation that implies Allbird’s revenue will grow over five times current levels, and that the company will become more profitable than all of its competitors, which is all highly unlikely. A copy of the associated update report is here.Īllbirds (BIRD: $2 billion expected valuation) is expected to go public in the coming weeks with an expected valuation of roughly $2 billion, which would earn the stock our Unattractive rating. We published an update on BIRD on February 7, 2022.
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