The Italian Brand Reports a Strong 9-Month Financial Performance, Plans for Expansion
Golden Goose reported an increase in revenues by 12% during the first nine months of the year. The brand also reported that its bottom-line figures had shown significant growth.
By September 30, the company’s adjusted earnings before interest, taxes, depreciation and amortization had increased 11% to 163 million euros compared to the same time last year, showing a margin of 35% on sales. Meanwhile, the adjusted operating profit enjoyed an 8% rise to 118.5 million euros. Overall sales for the nine-month period totalled 466 million euros.
Golden Goose’s CEO, Silvio Campara, attributed the steady growth to the brand’s connection with the younger generation. Commenting on the successful financial results, he said, “The group’s steady growth in the first nine months of the year has continued to demonstrate the strength of our brand and community. 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 especially by Golden Goose’s direct-to-consumer channel which saw an 18% increase in revenues, amounting to 346.1 million euros. This accounted for 74% of the total revenues, driven by significant growth in the Europe, Middle East and Africa region, which saw a growth rate of 27% over the nine months and 22% in the third quarter. In the Americas, DTC revenues rose by 4% in the nine months and 5% in the third quarter.
The retail sector contributed the most to DTC growth, enjoying a 20% increase due to new store openings and mid-single-digit like-for-like performance. Golden Goose opened 17 new stores during the reporting period in cities including Mexico City, Bangkok, Rome, and Kuala Lumpur. As of September 30, the brand had 208 directly operated stores. Recently, the company also opened its first store in India, located in Delhi, with plans to open stores in Mumbai and Bangalore next year.
However, the company’s wholesale channel saw a 4% decline to 110.4 million euros, which accounted for 24% of total revenues. This was due to a strategic decision to improve the quality of the brand’s distribution network and gain more control over co-creation opportunities.
For example, last month Golden Goose partnered with Italian streetwear brand FiveFourFive for a co-creation experience in Milan. This successful initiative involved reinterpretation of three signature sneakers and a ready-to-wear capsule collection. Customers had the opportunity to personalize and co-create pieces with Golden Goose’s artisans and the FiveFourFive creative team.
Sales in the third quarter rose 12% compared to the third quarter of 2023. The company introduced two new sneaker models during the period, the Lightstar and Forty2, both of which had global launches.
In the nine months, the EMEA region contributed to 49% of total sales, while the Americas accounted for 38%. The Asia-Pacific region generated revenues of 59.2 million euros, down 9% from last year and accounting for 13% of total revenues.
In terms of future plans, Golden Goose is launching the new Younique hybrid format, a combination of a café and a retail store. Locations currently include Bangkok, Seoul, Nanjing, and Xiamen.
Concerning plans for a pending IPO, delayed due to European market volatility, Campara maintained that the company would consider it when the market conditions were right. Golden Goose was expecting the price range of shares to be between 9.50 and 10.50 euros, implying a market capitalization of approximately 1.69 billion to 1.86 billion euros.
Founded in 2000, Golden Goose is known for its Superstar sneakers and distressed styles. The brand expanded to include apparel and accessories. Golden Goose also gained the support of renowned luxury industry professionals. In April, former Gucci president and CEO, Marco Bizzarri, joined the company’s board of directors.