Luxury sneaker brand Golden Goose has announced its intention to list on the Milan stock exchange in June, marking the largest initial public offering (IPO) in Italy in over a year. Known for its high-end sneakers priced around 500 euros ($540) a pair, Golden Goose’s move to go public comes at a time of revitalization in the European IPO market.
Valuation and IPO Terms
Golden Goose, which was valued at 1.3 billion euros when acquired by private equity firm Permira in 2020, has yet to announce the specific terms of its IPO. The details will be revealed closer to the launch date. The listing aims to attract high-level investors and talent, according to Chief Executive Silvio Campara, who emphasized the strategic benefits of going public.
Structure and Use of Proceeds
The IPO will consist of both existing shares and 100 million euros worth of new shares, targeting a free float equal to at least 25% of the outstanding share capital. The proceeds from the offering will be used to strengthen Golden Goose’s capital structure and reduce its debt, thereby positioning the company for further growth and stability.
Founded in Venice in 2000, Golden Goose is renowned for its distinctive sneakers featuring a five-point star logo. While sneakers remain the core of its business, the company plans to expand its ready-to-wear and accessories categories. With 70% of its customer base being women, the brand sees significant potential for growth in the accessories segment, particularly bags.
Campara also highlighted the company’s ambitions to strengthen its presence in emerging markets, which have a younger demographic and considerable growth potential. This focus on expanding geographically and diversifying product lines is part of Golden Goose’s broader strategy to enhance its market position.
Golden Goose has demonstrated strong financial performance, with net revenue reaching 587 million euros last year and an adjusted core profit of 200 million euros in 2023, a 19% increase from the previous year. Over the past four years, the company has doubled its store count, increased revenues, and acquired some of its suppliers, solidifying its supply chain and operational capabilities.
Comparison with Moncler and Market Sentiment
Permira aims to achieve valuation multiples for Golden Goose similar to those of the luxury clothing group Moncler. Moncler is expected to trade at an enterprise value of around 12 times its core profit in the coming months, according to data from the London Stock Exchange Group (LSEG). This comparison underscores the high expectations for Golden Goose’s market performance post-IPO.
The IPO will see the involvement of major financial institutions, with BofA, J.P. Morgan, Mediobanca, and UBS acting as joint global coordinators and joint bookrunners. Additionally, BNP Paribas, Citigroup, and UniCredit will serve as joint bookrunners, while Lazard will be Golden Goose’s financial adviser. This robust consortium of financial partners reflects the significant interest and confidence in the brand’s public market debut.
Despite the broader context of slowing demand for luxury goods, Golden Goose is positioned to capitalize on its high-end market segment. Companies catering to high-end consumers have generally performed better than those targeting aspirational buyers. Golden Goose’s focus on the luxury market and its strategic expansion plans are expected to drive continued growth and investor interest.
Golden Goose’s upcoming IPO on the Milan stock exchange represents a significant milestone for the luxury sneaker brand. With a strong financial track record, strategic expansion plans, and robust support from leading financial institutions, the company is well-positioned to attract high-level investors and achieve substantial growth. The successful listing will not only bolster Golden Goose’s capital structure but also enhance its market presence, paving the way for future innovations and market expansions.
