Taylor Swift favorite Golden Goose postpones IPO due to political upheaval in Europe

By Louis Goss

Golden Goose, the Italian fashion brand that makes scruffy sneakers worn by Taylor Swift, has postponed its initial public offering in response to a "significant deterioration in market conditions," driven by political upheaval in Europe.

"The significant deterioration in market conditions following European parliamentary elections this month and the calling of a general election in France have impacted European markets performance and, in particular, the luxury sector," Golden Goose said in a statement.

"Management and shareholders have always been determined to ensure a successful IPO for all stakeholders, with strong and sustainable aftermarket performance, and believe the current market backdrop is not the right environment to take the Company public," the firm added.

The European parliamentary elections, which took place from June 6- 9, saw a major swing toward the right-wing European Conservatives and Reformists (ECR) bloc, which is currently led by Italian President Giorgia Meloni, as Europe's left-wing parties lost out.

The ECR, which is made up of right-wing parties from across Europe's including Poland's Law and Justice, Spain's Vox, and Alternative für Deutschland split off group Wir Bürger, won 76 out of 720 seats, making it the European parliament's fourth largest political bloc.

In response to a major upsurge in support for Marine Le Pen's right-wing National Rally party in the European elections, President Emmanuel Macron subsequently called a snap general election in France which is scheduled to take place across two rounds on June 30 and July 7.

European markets have reacted negatively to the upheaval, in a shift that has seen the London Stock Exchange recapture its position as Europe's biggest equity market due to a drop in the value of stocks on the Euronext Paris exchange.

The CAC 40 (FCE00) index of France's top stocks is down more than 3% since Macron called his snap election on June 10, paring its year-to-date gain to just 0.6%. That makes the index a clear underperformer in what has been a mostly solid year for European stocks - the Stoxx Europe 600 XX:SXXP is up 7.3%, according to FactSet. The FTSE MIB Italy index IT:I945 is down 3.3% since June 10, but is up 9.9% year to date.

Golden Goose had previously planned to launch an IPO on the Euronext Milan stock exchange on June 21, in what was set to be Italy's biggest public float since Apollo-backed gambling company Lottomatica raised EUR690 million in May 2023.

The Venetian-headquartered shoemaker, which was acquired by private-equity firm Permira in 2020 for EUR1.28 billion ($1.37 billion), had set its price range at EUR9.50 to EUR10.50 per share, implying a market capitalization of between EUR1.69 billion and EUR1.86 billion.

The celebrity favorite, whose shoes have been worn by A-list celebrities including Selena Gomez and Reese Witherspoon, had planned to sell a 30% stake in itself for up to EUR558 million, including to Invesco which had already agreed to purchase EUR100 million worth of shares.

-Louis Goss

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

06-19-24 0455ET

Copyright (c) 2024 Dow Jones & Company, Inc.