(Bloomberg) -- Golden Goose, the luxury brand behind the trendy sneakers favored by Selena Gomez and Taylor Swift, is acquiring its top supplier in a bid to boost capacity while maintaining its credentials as a sustainable producer.
The move means Golden Goose, owned by Permira Holdings LLP, will only outsource 60% of its production, Chief Executive Officer Silvio Campara said in an interview.
That will give the Milan-based company “strategic control of the supply chain,” the CEO said, without disclosing financial terms for the deal to buy Italian Fashion Team.
The supplier’s founder and CEO Michele Zonno will stay on to run the company, a decision Campara said underscores the sneaker maker’s artisan-based approach.
“We want partners who share our values,” Campara said. “Zonno’s team can go from sketches to final products, our job is to enhance and support their expertise.”
Golden Goose’s long-term relationships with suppliers will enable the company to hold annual price rises for its sneakers -- which sell at between $450 and $800 -- to 4%, Campara said.
That’s in line with previous years, said the 43-year-old CEO, who helped build Golden Goose up from a small Venetian fashion firm into a brand with 160 outlets and 2021 sales of around $385 million.
Vintage Look
The company’s first-half revenue of €228 million ($227 million) and a 40% improvement in earnings before interest, taxes, depreciation, and amortization also show that “it’s possible to have international growth with a sustainable attitude,” Campara said, pointing to a focus on local hand-made products as a mark of a commitment to sustainable production.
“It is not just about how much carbon you save,” Campara said, “but also about people, celebrating local craftsmanship.” That approach means handmade, low-impact components and a commitment to “tracing transparency,” according to the company.
Consumers have taken to the message, and the company -- known for its vintage-style, star-emblazoned footwear -- is growing fast, with an average of about 15 new store openings per year.
Financial firms have noticed too, as Golden Goose has already passed through the hands of three global investment groups. Carlyle Group bought the company from Ergon Capital Partners SA in 2017, sparking its expansion into the US and China. Three years later, Permira paid about €1.3 billion for Carlyle’s majority stake.
Golden Goose has periodically been linked to a possible stock market listing, and Campara said his company isn’t ruling out the option at some point in the future, though no concrete plans are in place.
“We have to be flexible,” the CEO said. “At the moment our sole focus is our customers and the brand.”
©2022 Bloomberg L.P.
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