Co-Creation, DTC Drive Golden Goose Nine-Month Revenues
Golden Goose continues to grow and its chief executive officer Silvio Campara said the performance in the nine months of the year “shows the power of our determination, innovation and ambition.”
In the nine months ended Sept. 30, revenues rose 12 percent to 466 million euros, compared with the same period last year.
In the third quarter, consolidated sales climbed 12 percent, compared with the third quarter in 2023.
In an interview, Campara highlighted the brand’s unique market position and the importance of co-creation with its consumers, which helped drive growth.
Golden Goose “has a global network and offers a diversified experience in each city, and within each city this is further diversified,” Campara said. “Europe, for example, has a touristic vocation, and in terms of culture, food [and] museums, it’s a leader. Products are bought here as souvenirs from tourists from all over the world. On top of this, it’s done without diluting the offer in their own countries. This glocalization rewards us, we have global silhouettes but different constructions everywhere and let’s not forget the co-creation factor, which in Europe is at a very high level. We leverage both tourists and local customers in Europe, as the latter represent the majority of our sales, conversely to many luxury brands.”
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Campara said the brand encourages customers to express their creativity, leading to a sale that represents a special moment. “Against a backdrop of headwinds in the luxury sector, we are committed to sustaining our momentum by enhancing the shift from marketing to experience by putting our customers and community at the center. I am confident that this will carry us from strength to strength in the future.”
Retail Growth
In the nine months, direct-to-consumer sales rose 18 percent to 346.1 million euros, accounting for 74 percent of the total, compared with 71 percent in the same period last year. The growth was driven by a 37 percent gain in the Europe, Middle East and Africa region, a 14 percent increase in the Americas and a combination of new openings and positive like-for-like performance. In the fourth quarter, stores opened in Dallas and in New York in the Meatpacking district.
Next year, the company will open units in Mumbai and Bangalore, in addition to the existing store in Delhi — all directly operated, Campara said.
The wholesale channel declined 4 percent 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 and to more easily control the co-creation opportunity. “We are obsessed by offering the best possible experience to customers,” Campara said.
Percentage changes were provided at constant currency.
“In September, we opened our Haus of Dreamers in Marghera, near Venice, a place which celebrates product, arts and craftsmanship and reconfirms our effort at fostering the new generation of artisans through our new Academy,” Campara said. As reported, last month, Golden Goose unveiled a Haus in Mexico City to further engage with local communities, installing a cultural and brand-building 6,458-square-foot space in the city’s La Roma neighborhood.
Dubbed Haus CDMX and codesigned by the brand with Mexican architect Michel Rojkind, it spans over three floors of a storied building on Colima Street.
New Generations
“We are approaching markets that may not be typically on the radar of luxury brands, we target the demographics rather than the countries, and the young emerging consumers are in Mexico, Brazil, India and South East Asia, for example,” Campara said. “Without diluting its core loyal customers, the brand has seen an increase in Gen Z customers, key to growth,” he added.
In the nine months, the Europe, Middle East and Africa region accounted for 49 percent of sales.
The Americas accounted for 38 percent of sales, and the Asia-Pacific region represented 13 percent of the total. Asked about China, Campara said “it is still a small business, so there is potential and opportunities,” and cited Thailand and the Philippines as markets that are performing well in the area.
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.
IPO Update
Asked for an update on the pending IPO, which was expected to take place in June and was delayed at the 11th hour, Campara, 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 postponement of the highly anticipated public listing of Golden Goose was attributed to the “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.
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.
