The desire and demand for a life of luxury have been slowing down in very recent years, with the personal luxury market currently experiencing a bit of turbulence as consumers put a pause on their grand spending. Joining other companies in the latest test for Europe’s recovering market, Italian luxury sports brand, Golden Goose, announced on Thursday their plan to list on the Milan stock exchange this month, making the biggest initial public offering in Italy in at least a year.
Based in Venice, Italy, Golden Goose is a high-end fashion sneaker brand that has turned distressed footwear into a luxury. What appears to be scuffed and well-worn, Golden Goose sneakers are hand-crafted from high-quality Italian leather, giving them their desirable “broken in” look that can be found sported on the likes of Taylor Swift, Selena Gomez, and Hilary Duff.
Effortlessly cool, the casual, distressed style of Golden Goose’s sneakers is what sets them apart from other products made in Italy, and a significant factor in the brand’s popularity among individuals aspiring to add a touch of luxury to their lifestyle. Golden Goose sneakers are generating much attention from many young professionals as well, individuals seeking high-end casual footwear amid the shift to agile working.
Owned by British private equity group, Permira, Golden Goose announced its plans to float at least 25 percent of the company this month, consisting of existing shares and an additional 100 million euros of new shares. According to the company, Permira’s goal is to strengthen its capital structure and reduce debt with the proceeds.
This listing is one of Europe’s most anticipated moves, coming at a time when the global luxury market is experiencing turmoil. Chief executive of the company, Silvio Campara, stated, “Going public allows us to have high-level investors… and to attract talent.” Believing that going public is the natural next step for the company, Campara expressed that, despite the tumultuous luxury market landscape, potential investors were “very excited about the story and [willing to support the group] along this journey on the good and bad days.”
Hoping to significantly reduce their debt load, Golden Goose’s chief financial officer, Paolo Dal Ferro, stated that the group aims to “grow organically and deleverage the company while keeping [its] operating margin stable.”
Campara expressed, “We aren’t focused on product, we are focused on the consumers . . . Trainers have been the gateway into luxury for new generations and what we have done is nurture a conversation with them through sneakers.” While still known most for their superstar sneakers, Golden Compass is expanding into clothing and accessories to better meet the needs of their largest audience.
The Golden Goose customer is most often female. With about 70% of their sales coming from women, the company is seizing the opportunity to expand into ready-to-wear while also strengthening in emerging markets with younger populations.
Having already selected banks to work on the float of Golden Goose last year, Permira is expected to value the company at about 3 billion euros, including debt; however, Dal Ferro argues that it is the market that will decide the price and value based on demand and offer.
