Even with the good performance of Vans, VF Group hopes to capture more sports shoe brands.
On December 2nd, according to Reuters, the shoe and apparel retail giant hopes to acquire the high-end sports shoe brand Golden Goose from the Carlyle Group, becoming one of many bidders.
At present, the Carlyle Group has invited companies interested in bidding to submit non-binding quotes in mid-December 2019 and has entrusted Bank of America to lead the acquisition, which is expected to be completed as early as 2020.
It is reported that VF Group has submitted an offer for purchase, but the price details have not been disclosed. VF Group will not comment for this incident.
Golden Goose sneakers In 2000, designers Francesca Rinaldo and Alessandro Gallo founded this Italian trendy shoe brand, headquartered in Venice.
The cheap golden goose brand focuses on high-end casual sports shoes made of leather, mostly decorated with the brand’s iconic five-pointed star, and is sought after by trendy people. Its products include clothing, shoes and accessories. The brand currently has stores in Europe, the United States, Japan, South Korea and China.
In recent years, Golden Goose’s controlling interest has changed hands many times. In 2013, Italian private equity fund DGPA SGR acquired 75% of its equity for 45 million euros. In 2015, Cyprus investment company Ergon Capital Partners III took a 75% stake in the brand.
In 2017, the American private equity giant Carlyle Group acquired all equity in the Golden Goose brand, with a transaction valuation of up to 400 million euros.
According to Reuters, after being acquired by the Carlyle Group, in 2018, Golden Goose’s revenue nearly doubled, with sales of 185 million euros, and earnings before interest, tax, depreciation and amortization of about 80 million euros.
The brand’s most popular product is its Superstar sneakers, which account for more than one-third of its revenue, and big-name stars such as Taylor Swift and Kendall Jenner have once played.
People familiar with the matter point out that Golden Goose is currently valued at € 1.4 billion.
As early as September of this year, the Carlyle Group has reportedly sold its stake in Golden Goose.
In addition to VF Group, Golden Goose has also attracted the interest of many financial investors and some American fashion groups. Tommy Hilfiger and Calvin Klein parent company PVH, Coach parent company Ralph Lauren, private equity fund Permira and Advent are potential bidders.
Among them, the VF Group already owns outdoor sports brands such as The North face, Eastpak, Timberland and Vans, and now hopes to expand the sports shoe field by acquiring the light luxury brand Golden Goose.
In the previous fiscal year, in the 12 months ended March 2019, VF Group’s operating income increased 12% year-on-year to US $ 13.8 billion, and gross profit margin increased by 30 basis points to 51.1%. The performance of VF Group continued to grow, mainly due to its Vans and The North Face brands.
In the first quarter of fiscal 2020, in the three months ending June 2019, top Vans sales increased 23% year-on-year, and The North Face grew 9%, driving VF Group revenue to increase 6.3% to $ 2.27 billion.
However, the latest second-quarter results released in October this year showed that Vans sales increased by 14% year-on-year, and the growth of direct channel business and digital business slowed down.
Due to the failure of the core brand Vans to continue the high growth rate, VF Group’s sales in the second quarter failed to meet analyst expectations, increasing by only 5.4% year-on-year to US $ 3.39 billion, lower than the consensus estimate of US $ 3.42 billion, and net profit increased by 28% To $ 649 million.