Allbirds Inc. posted a wider than expected quarterly loss on Tuesday in the shoemaker’s first set of results since its Nasdaq debut earlier this month, hurt by rising expenses associated with operations and investments in its business.

Shares of the company fell over 8 percent in extended trading.

The shoemaker, which has yet to turn a profit, has seen costs rise due to its recent listing along with its focus on international store expansion and research on newer materials for its athletic gear as it looks to take advantage of the rising demand for environmentally-friendly products.

The digitally native brand, which was initially available only through online channels, had about 89 percent of its revenue come from e-commerce last year. As of third quarter end, it operates 31 stores globally.

Allbirds, a favourite among workers in the Silicon Valley where it is based, joins the likes of other sustainability-focused companies such as On Holding AG and ThredUp Inc. that are benefiting from a growing number of Gen-Z and millennial shoppers flocking to brands that are environmentally conscious.

The sustainable footwear brand’s total revenue rose 33 percent to $62.71 million in the third quarter ending Sep. 30. Total operating expenses rose to $45.81 million in the reported quarter from $32.23 million a year earlier.

Net loss widened to $13.80 million, or 25 cents per share, in the third quarter, compared with a loss of about $7 million, or 13 cents per share, a year earlier.

Analysts on average were expecting a loss per share of 12 cents on a revenue of $61.92 million, according to Refinitiv IBES data.

By Mehr Bedi

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