The Italian luxury luxury shoe brand Golden Goose Deluxe Brand (Chinese translation of “Golden Goose”, hereinafter referred to as “Golden Goose”) is expected to achieve double-digit growth in 2017 and the expansion of the independent brand store network. Recently, Golden Goose celebrated the 10th anniversary of the brand’s classic Superstar sneakers in Milan with the launch of the capsule series.
Golden Goose was founded in 2001 in Venice, Italy by Francesca Rinaldo and Alessandro Gallo. After being taken over by the US private equity giant Carlyle Group in March this year, Golden Goose celebrated the 10th anniversary of the birth of its iconic superstar, Superstar. It also identified the brand’s new business and distribution goals. The 10th anniversary event was held at Golden Goose’s flagship store on 1 Ponte Vetero Road in Milan, while simultaneously launching a limited edition of 1000 pairs of Superstar capsule sneakers in Tokyo, Seoul and New York, and inviting to the moon, in gold T-shirts, sweaters and bomber jackets in the style of street color hip-hop.
In addition to selling the Superstar 10th Anniversary Capsule Series at the flagship store and the official e-commerce platform goldengoosedeluxebrand.com, Golden Goose’s business is also impressive. It is said that cheap golden goose‘s sales in 2016 amounted to approximately 100 million euros and its operating profit was approximately 32 million euros. In FY2017, it is expected to achieve double-digit growth in sales.
Brand CEO Giorgio Presca said in an interview with Italian fashion media MF Fashion: “2018 will be a key year for Golden Goose to re-adjust. We are now investing not only in footwear products that account for 75% to 80% of the brand’s business volume. The ready-to-wear products are also our focus. We will develop a more tailored tailoring method for menswear and womenswear. Our creative directors (brand founders Alessandro Gallo and Francesca Rinaldo) hope to provide a very precise and timeless series. Create a complete lifestyle brand.” Giorgio Presca points out that although the brand has never organized an official launch or fashion show to showcase the latest collections, the category of ready-to-wear has contributed 18% of the brand’s sales. The brand will participate in Fashion Week next season.
Giorgio Presca was appointed CEO of the company after the acquisition of Golden Goose in March this year. He previously joined Geox, the famous Italian footwear company, as CEO. He has 25 years of experience in the fashion industry and has served as CEO of Citizens of Humanity, President of VF Jeanswear International, General Manager of the Diesel Group, and Brand Director of Levis Strauss & Co. Europe Middle East and Africa. He also worked in marketing in Nordica and Lotto in his early years.
Giorgio Presca also concluded: “At present, 90% of our sales come from wholesale channels. Because of this, we have started to build our direct network on a global scale, with the goal of 3 to 5 years in the future. Adding 50 to 70 independent brand stores. Retail development, brand globalization, and further improvement of international business are the goals we set together with Carlyle. In fact, after being taken over by the Carlyle Group, the brand is heavy. To expand the two biggest brands of the brand: Italy and the United States.
Golden Goose also opened a new store in Venice and opened its second store in the United States on Madison Avenue in New York (the first in Los Angeles). This week, the Munich store and the Roman store are also about to open, and London, Vienna and Zurich stores will also open in the near future. Up to now, the brand has 13 flagship stores in the SoHo and Upper East Sides of New York, as well as London, Paris, Tokyo, Beijing, Shanghai and other cities. “The US market is performing very well and we want to open stores in other (US) key cities such as San Francisco, Miami and Las Vegas,” said Giorgio Presca.
Regarding the international expansion strategy, in September this year, Golden Goose took the third largest market, South Korea’s distribution channel, from the partners, and obtained 19 stores. Lathan & Watkins’s legal affairs in the transfer of direct business Legal assistance was provided to Golden Goose. Golden Goose is also expanding its business in the Russian and Middle Eastern markets. Brand sales in both markets increased by double digits in 2017.
In February of this year, the Carlyle Group announced that it had signed an agreement with Golden Goose’s then largest shareholder, investment company Ergon Capital Partners, to acquire the entire share capital of Golden Goose for a transaction amount of 400 million euros. The deal was led by Marco De Benedetti, a partner of the Carlyle Group’s Italian subsidiary, and was carried out by Carlyle Europe Partners IV, a Mergers Group’s M&A fund focused on large and medium-sized European markets, and completed at the end of March this year. Golden Goose is the fourth major investment by the Carlyle Group in the European fashion and ready-to-wear industry. The first three investments were against Moncler, TwinSet Simona Barbieri and Hunkemoller.
In May 2015, Ergon Capital Partners II, an investment company focused on medium-sized companies, acquired a 75% stake in Golden Goose from the Italian private equity fund DGPA SGR for about 80 million euros. The brand co-founders Alessandro Gallo and Francesca Rinaldo retained The remaining equity.