MILAN — Golden Goose may have put the brakes on its initial public offering in June, but growth at the Italian fashion group hasn’t stopped.
On Monday, the company said revenues in the first six months ended June 30 rose 12 percent to 307.3 million euros, compared with 277.4 million euros in the same period last year.
“Our strong performance in the first half of 2024 reflects the sentimental link of the brand with our community of dreamers, that we have strengthened through our experience-based approach,” said Silvio Campara, chief executive officer of the group. “As we continue to expand our direct-to-consumer channel, enhancing our product offerings, and to foster deeper connections with our young, passionate and engaged community, I am incredibly proud of our Golden family for their dedication and passion, which drive our ongoing success.”
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While not providing any update on the IPO, Campara said in an interview with WWD that “what counts is a consistent story,” trumpeting an “overperformance” as the company has “beat promises made” that would see the company reach sales of 1 billion euros in 2029.
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The executive attributed much of the success of the brand to “its way of talking to and embracing customers.”
Asked about the expansion of the brand’s ready-to-wear category, Campara said that the growth rate is “even higher compared to the company’s average.”
Golden Goose “is starting to grow with new customers,” and not through price increases, he added.
As he has in the past, Campara said the brand’s customers “want to feel they are part of a community and that they can express themselves. It is key now to feel you belong rather than to show what you are wearing and it is up to us to embrace our customers.”
He was upbeat about the future and the rest of the year, saying that whoever wins the U.S. presidential election will in any case lead to clarity “to map out strategies.”
Rather than considering “a crisis of the luxury industry, and a China slowdown,” he urged his peers to “come out of our comfort zone and listen to the customer more because if you don’t understand your consumer, you will not retain them. Younger consumers want to feel good and are not interested in appearances.” In his opinion, Golden Goose is successful also because “it has a deep knowledge of the values of consumers,” and he believes the brand still has “so many opportunities” going forward.
The gains in the first half were driven by Golden Goose‘s direct-to-consumer channel with sales up 18 percent, reaching 226.8 million euros, and driven by the Europe, Middle East and Africa region as well as the Americas. It accounted for 73 percent of revenues.
In the period, the brand opened stores in Mexico City, Bangkok, Rome and Kuala Lumpur, Malaysia, bringing the network to more than 200 stores.
The wholesale channel reported revenues of 74.6 million euros, accounting for 24 percent of the total. This represented a 5 percent decline year-on-year, as a consequence of the decision to streamline distribution and upgrade its quality with the goal to protect the brand.
By markets, the EMEA region accounted for 48 percent of sales, the Americas represented 38 percent, while the Asia Pacific area accounted for the remainder.
Adjusted earnings before interest, taxes, depreciation and amortization climbed 12 percent to 109.2 million euros. Adjusted operating profit rose 9 percent to 80.5 million euros.
Percentage changes were provided at constant currency.
First-half Highlights
Among the highlights in the period, Golden Goose cited the launch of a new handbag collection at Neiman Marcus in Dallas in April and the extension of the co-creation approach to the category. Handbags are available in more than 20 Golden Goose stores and on Golden Goose’s website.
Golden Goose was established in 2000, and is best known for its successful Superstar sneakers and intentionally distressed styles, but has grown to comprise apparel and accessories.
The company also launched the new Younique hybrid format, which combines a café and a retail store. Younique cafés are currently located in Bangkok, Seoul and in China in Nanjing and Xiamen.
IPO Postponement
As reported, the highly anticipated public listing of Golden Goose, expected to take place in June, was delayed at the 11th hour “as a result of European market volatility” and the company underscored at the time that the suspension was not related to the response from the market until then.
The price range of Golden Goose shares was set between 9.50 and 10.50 euros, implying a market capitalization of about 1.69 billion to 1.86 billion euros. Thirty percent of Golden Goose’s capital was to be floated by the current sole shareholder of the company, Astrum SapA of Astrum 4 Srl & 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.
In April, Golden Goose secured the advice of a savvy luxury industry professional, as former Gucci president and CEO Marco Bizzarri joined the board of directors, flanking the likes of former Chanel global CEO Maureen Chiquet, who was named chair of the company in 2020.
Golden Goose Dreamers
In the spring, Golden Goose unveiled its latest Haus of Dreamers, located in Marghera, Italy, the industrial port of Venice where the company was founded. Haus of Dreamers is an all-encompassing cultural concept that has helped heighten global brand awareness with events in Paris and Los Angeles, for example, and was first launched in May last year.
It also comprises an academy, a space dedicated to product innovation, an archive and an exhibit area combining multiple disciplines and backgrounds.
The brand has a community of 1.5 million individuals, called Dreamers by the company.
Last month, Jackson Yee, the multitalented Chinese actor and singer, was named a Golden Goose global brand ambassador.
Yee appears in the ad campaign by photographer Yu Cong dedicated to Golden Goose’s new Lightstar sneakers. In his new role at Golden Goose, he joins the likes of skaters Keegan Palmer, Rune Glifberg and Olympic bronze medalist and leader of the U.S. National Team Cory Juneau, as well as tennis ace Matteo Arnaldi and padel player Arturo Coello.