MILAN — Shortly after reporting a 12 percent increase in revenues in the first nine months of the year, Golden Goose on Wednesday revealed it had also registered a strong bottom line.
As of Sept. 30, adjusted earnings before interest, taxes, depreciation and amortization climbed 11 percent to 163 million euros compared with the same period last year, a margin of 35 percent on sales.
Adjusted operating profit rose 8 percent to 118.5 million euros.
In the nine months, sales totaled 466 million euros.
“The group’s steady growth in the first nine months of the year has continued to demonstrate the strength of our brand and community,” said chief executive officer Silvio Campara. “Our innovative product releases allow us to continually reinforce our connection to the young generation of consumers, and our retail store network provides an engaging experience for our clients and communities.”
The performance was boosted by the brand’s direct-to-consumer channel, which posted an 18 percent increase in revenues to 346.1 million euros, accounting for 74 percent of the total, driven by strong growth in the Europe, Middle East and Africa region, up 27 percent in the nine months and 22 percent in the third quarter. In the Americas, this channel was up 4 percent in the nine months and 5 percent in the third quarter.
“The group is increasing its revenues around the world and DTC incidence is higher than ever before. I am very proud of all we have achieved with our Golden family and we look forward to building on our strong growth,” Campara said.
Retail was the main contributor to the DTC growth, up 20 percent thanks to new openings and midsingle-digit like-for-like performance. The company in the period opened 17 stores in cities including Mexico City, Bangkok, Rome and Kuala Lumpur, Malaysia.
As of Sept. 30, the network of the brand’s directly operated stores totaled 208 units. During the fourth quarter, Golden Goose also opened its first store in India, in Delhi. Next year, the company will open units in Mumbai and Bangalore — all directly operated.
The wholesale channel registered a 4 percent decline to 110.4 million euros, accounting for 24 percent of the total, as a result of the strategic decision to continue upgrading the quality of the distribution network to preserve the brand’s integrity and to more easily control the co-creation opportunity.
For example, earlier this month Golden Goose partnered with Italian streetwear brand FiveFourFive, founded by Luca Santeramo (Sante), presenting a co-creation experience at the Forward store in Milan, which Campara highlighted as a success. Three signature sneakers were reinterpreted and a ready-to-wear capsule revisited some of Golden Goose’s most significant items.
During the weekend of Nov. 9 and 10, customers, or “Dream Makers” as Campara calls them, had the opportunity to personalize and co-create pieces with Golden Goose artisans and the FiveFourFive creative team. The store registered foot traffic of 2,500 people in two days and the merchandise was entirely sold out. A spokeswoman said that, from 6 p.m. on Nov. 8, 120 people camped outside the store and the lines continued until Sunday evening.
Golden Goose x FiveFourFive
In the third quarter, consolidated sales climbed 12 percent, compared with the third quarter of 2023.
Golden Goose has recently launched two new sneaker models — the Lightstar, which debuted in China, Korea and online, and which is now available in select stores worldwide, and the Forty2 presented for the first time at the brand’s Paris event and launched worldwide. For the second year in a row, during fashion week, Golden Goose returned to Paris with the “We Will Always Be Those Kids” event, celebrating the brand’s core values of community, creativity and freedom of expression.
In the nine months, the EMEA area represented 49 percent of total sales, while the Americas accounted for 38 percent.
The Asia-Pacific region reported revenues of 59.2 million euros, down 9 percent and accounting for 13 percent of the total.
In the third quarter the negative trend in APAC mitigated, declining 3 percent, with a clear improvement compared to the previous three months, mainly driven by acceleration outside Greater China and South Korea. The company has 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.
Percentage changes were provided at constant currency.
The cash position amounted to 145 million euros.
Asked for an update on the pending IPO, which was expected to take place in June and was delayed at the 11th hour due to European market volatility, Campara earlier this month said “the process never finished for us, we continue to create value aligned with our investors, and when there will be the right market conditions, it will be an option that we will consider.”
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.
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.
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.
