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Looking for analysis of Golden Goose Deluxe Brand company financials. Particularly interested in any insights you can find on their financial situation, whether they are doing well and whether any figures should be cause for concern.
Hello! Thanks for your request for an analysis of the Golden Goose Deluxe Brand company financials, and insights into their financial situation. The short version is that while as a privately held company, financial data for Golden Goose is not released publicly, I was able to use alternative data sources to gain an estimate of the company’s overall revenue as well as other financial data, including how much the company was recently bought out for, as well as relevant data on their financial growth. Below you will find a deep dive of my findings.
METHODOLOGY
In order to provide an analysis of the Golden Goose Deluxe Brand, I sourced data from industry reports, business news sources, and other relevant media outlets, looking for information on the company's overall revenue, growth, acquisitions, and all other relevant financial data. Per your request, I also noted any potential financial concerns of the company.
FINANCIAL OVERVIEW
Golden Goose Deluxe was founded in 2000 in Venice, Italy and is best known for their luxury sneaker line. The Italian brand also carries other high end clothing items and is distributed globally. While they are not required to publicly release their annual revenue, given available financial data the company is estimated to have earned €48 million in 2014, which represents revenue tripling since 2010. The brand was also estimated to have seen a 49% increase in sales between 2014 and 2015, according to a chief executive officer, who projected 70 million euros as the revenue for 2015.
50-60% of this revenue was generated outside of the Italian market, with the largest sources of company revenue noted to be Japan, Korea, France, Germany, and the USA. The brand has over 600 multi-brand stores globally, with their seven flagship stores located in Milano, Amsterdam, Paris, New York, Beirut, Tokyo and several corners/shop-in shops in France, Korea and Japan.
FINANCIAL DATA AS RELATED TO ACQUISITIONS
The most notable financial data available on Golden Goose Deluxe relates to their buyout in 2015 by Ergon Capital Partners. Ergon bought the Golden Goose brand from private equity fund DGPA SGR II for an estimated 80 million euros. Ergon has a portfoilio of 8 companies that fall into a variety of sectors including luxury, specialty retail, industrial manufacturing, healthcare and publishing.
Currently Ergon is noted to be in talks with another company, Lazard Ltd, to sell the rapidly expanding brand at a sizable profit. While the sale deliberations have been private, it has been noted the Ergon is now seeking over 400 million euros for the brand, 320 million more than the brand was acquired for.
FINANCIAL CONCERNS/ OTHER RELEVANT DATA
While it did not impact their financial stability or sales, it is probably relevant to note that the Golden Goose Deluxe Brand was recently associated with some public controversy. The brand's pre-distressed sneaker that was carried at high end retailers was said to be appropriating poverty, as it featured faux duct tape and frayed laces as part of its appeal.
The brand responded that the design was not meant to appropriate poverty, but rather was an homage to the worn out sneakers often worn by West Coast skaters. However, in my research I found no evidence of the negative publicity harming the brand's overall sales.
So in summary, Golden Goose Deluxe Brand has seen rapid financial growth, with the company that acquired it in 2015 planning to sell it for an incredibly large profit margin. The company which is based in Italy generates a large portion of its revenue in international markets. Thanks for using Wonder! Please let us know if we can help with anything else!