Golden Goose, an Italian luxury sneaker brand, has decided to postpone its initial public offering on the Milan stock exchange due to the prevailing political uncertainty in Europe.

What Happened: The company, known for its high-end sneakers, has delayed its IPO, which was scheduled for June 21, citing the recent political turmoil in Europe as the primary cause of the market volatility, reported Reuters.

Golden Goose, owned by private equity firm Permira, was aiming for a market capitalization of up to 1.86 billion euros ($2 billion), which was below the initial expectations. The company, which sells shoes for approximately 500 euros a pair, stated that it would consider reviving the IPO at a more opportune time.

The recent announcement of snap general elections in France has had a significant impact on the luxury sector, including companies like Moncler, against which Golden Goose was being priced. Moncler’s shares have dropped by 2.7% on Tuesday and nearly 6% since the announcement of Golden Goose's IPO plans.

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Why It Matters: Golden Goose’s decision to postpone its IPO comes just a month after the brand announced its plans to go public, boasting a $3.3 billion valuation. The company’s unique approach to sneaker design, often featuring a worn-in look, has earned it a celebrity following, with stars like Taylor Swift, Selena Gomez, and Reese Witherspoon regularly sporting its products.

Despite the IPO postponement, Golden Goose’s business continues to perform well, with asset manager Invesco acting as a cornerstone and investors showing strong interest. The company’s IPO was oversubscribed multiple times, with bookrunners estimating a share price between 9.50 euros ($10.21) and 10.50 ($11.28) euros.

It remains to be seen how the political situation in Europe will evolve and whether it will impact other companies planning to go public shortly.

Image via Shutterstock

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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal