There’s now no impediment to the initial public offering of Golden Goose, as the admission to listing on Euronext Milan has been approved by Borsa Italiana and Italy’s watchdog CONSOB.
As reported, the first day of trading is expected to be June 21 and the price range of Golden Goose shares has been set between 9.50 euros and 10.50 euros. This implies a market capitalization of approximately 1.69 billion euros to 1.86 billion euros for the Italian company.
The offer period is expected to start today and end on or around June 18. The final offer price is expected to be published on June 19.
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The IPO is aiming at strengthening the group’s capital structure, allowing operating investments and reducing the company’s debt, which last year amounted to 480 million euros.
Yanmei Tang, analyst at Third Bridge, a primary research business servicing private equity firms, credit investors, hedge funds and strategy consultants, said: “Golden Goose has built a strong reputation in luxury sneakers, and its loyal customers have helped it stay strong over the past year and a half, even as inflation and uncertainty hit other brands hard. They broke new ground in the sneaker world by offering personalized laces as an add-on, rather than just tossing them in the box. It’s a quirky yet smart move that highlights the power of personalization.”
Third Bridge experts “are bullish on Golden Goose’s margins, seeing room for further sneaker price hikes. Additionally, the acquisition of their largest manufacturer in Italy gives them a strong edge in cost control,” continued Tang, referring to the company’s vertically integrated Made in Italy production. Golden Goose sneakers are all handmade by artisans in Italy and, to further tighten control over production, the company cquired two of its primary suppliers, Italian Fashion Team Srl and Calzaturificio Sirio Srl, enabling it to internalize production of approximately 50 percent of volumes sold in 2023.
“Golden Goose has massive growth potential if they expand beyond sneakers into apparel and accessories. However, our experts say their brand positioning and messaging need to be clearer,” contended Tang.
Navina Rajan, senior private capital analyst at Seattle-based PitchBook, said the listing of Golden Goose “is another example of recovery in the PE-backed listings market, especially within the consumer beauty segment.” Rajan pointed to Puig’s “significant” IPO, which “added to the testing points for market sentiment,” and said that, “given the good performance of other listings so far this year such as Galderma and CVC, favourable proof points continue to add precedence for most listings from a full European IPO pipeline, where Golden Goose fits the profile – a high-margin business priced within a reasonable range versus comps.”
Puig, the owner of brands such as Rabanne, Carolina Herrera and Jean Paul Gaultier, raised 2.6 billion euros for its founding family on its first day of trading in Barcelona last month, the largest float in Europe so far in 2024 and the biggest in Spain since 2015.
Thirty percent of Golden Goose capital will be floated by the current sole shareholder of the company, Astrum S.a.p.A. of Astrum 4 S.r.l. & C. In 2020, the company was acquired by the private equity fund Permira from the Carlyle Europe buyout fund. The price tag was 1.28 billion euros.
Funds advised by Invesco Advisers Inc. have undertaken to acquire shares at the final offer price, for an amount of 100 million euros, acting as cornerstone investors.
There will be a lock-up of 180 days from the listing date for the selling shareholder and the company, and 360 days for selected members of management. Chief executive officer Silvio Campara will stay on in his role and as an investor.
Golden Goose’s signature sneaker is the Superstar, introduced in 2007, and the brand has since launched more than 20 new models, but Campara is expanding its product offer with ready-to-wear and accessories. DTC accounted for 74 percent of revenues last year and comprises a network of 195 directly operated stores.
In a statement issued earlier this week, Golden Goose, which was established in 2000, said the company is pursuing a growth strategy based on five pillars: Continue nurturing leadership in sneakers; amplify brand awareness globally; evolve the group’s global presence; enhance the brand’s experiential journey, and selectively leverage new categories.
From 2021 to 2023, Golden Goose reported a 23 percent compound annual growth rate in revenues and an earnings before interest, taxes, depreciation and amortization adjusted margin of around 34 percent last year.
In 2023, the company registered sales of 587 million euros, an increase of 18 percent compared with 500.9 million euros in 2022, an adjusted EBITDA of 200 million euros, increasing 19 percent, and an adjusted operating profit 149 million euros, growing 22 percent.
In the first quarter of the year, revenues amounted to 148 million euros, up 11 percent compared with the same period in 2023, and an adjusted EBITDA of 54 million euros, growing 17 percent compared to the first quarter last year.
