The luxury Italian sneaker maker, Golden Goose, is famed for its A-list followers who include Taylor Swift, Chris Hemsworth and Selena Gomez. But it has faced criticism for its high prices and distressed-look trainers.
Golden Goose, the upmarket Italian sneaker manufacturer, has recently revealed that it has put its Milan initial public offering (IPO) on hold, following turmoil in the European markets after the recent European Union elections.
The brand said, in a statement on Tuesday night, “As part of the IPO process, the company has engaged widely with investors. The reception of the story has been very positive, with strong support across the investment community, including from Invesco, who acted as a cornerstone with €100 million of demand.
“However, the significant deterioration in market conditions following European Parliament elections this month and the calling of a general election in France have impacted European markets performance and, in particular, the luxury sector.”
Originally planned for 21 June, the IPO was called off last minute on Tuesday, with the company highlighting that it is still unsure about whether the timing of the public flotation was right.
Although Golden Goose has been around since 2000, it shot to fame recently, with Taylor Swift publicly wearing their sneakers. The brand is renowned for its distressed sports shoes, which are highly customisable and available in about 180 stores across the world. Apart from sneakers, it also sells bags and other accessories.
Golden Goose had previously planned to price its shares somewhere between €9.50 and €10.50 upon the launch of the IPO, however, it later decided to settle on the lower end, at about €9.75. This could indicate that the company might have been having potential pricing issues with investors.
It also revealed that it was hoping for a $2 billion (€1.86 billion) market capitalisation, with about 25% of the company initially supposed to have gone public.
Could Golden Goose try to list again?
Golden Goose already has a significant celebrity following, with the likes of Taylor Swift, Chris Hemsworth and Selena Gomez among fans. Although this has raised the brand’s profile, it has still been heavily criticised for its designer distressed look.
This could be due to the sneakers retailing for anywhere between $500 to $2,000 for most models, which may leave customers wanting something a little more pristine.
However, despite the social media criticism, the company posted robust first quarter 2024 financial results, with a net revenue of about €148 million, a surge of 12% from Q1 2023.
Golden Goose has also revealed that it will be revisiting its IPO plan down the line, but has not disclosed any timeline or price details as of yet.
Silvio Campara, chief executive officer (CEO) of the Golden Goose group, said, in the company’s first quarter 2024 financial results, “Golden Goose’s strong set of results for the first quarter of the year, building on an excellent FY2023, prove that our unique proposition, truly connecting with consumers, is successful even in the challenging market environment we see today.
“As we look ahead, we will stay focused on progressing the strategic priorities that have made us successful to date – accelerating our product portfolio across sneakers as well as bags and accessories while expanding our presence and growing direct-to-consumer as we nurture the Golden brand.”
