Cole Haan announces upcoming IPO
Following reports that the American footwear brand’s annual sales totaled $687 million last year, Cole Haan has revealed that it is preparing for an initial public offering.
Currently owned by private equity firm Apax Partners, which acquired the brand from Nike in 2013, Cole Haan has not yet provided any kind of timeline for its planned IPO.
However, Bloomberg, which first reported the news on Monday morning, cited an unnamed source familiar with the matter, who stated that the company is already in discussions with investment banks.
“Our management team is confident in the opportunities we have created for the Cole Haan brand and our business globally,” said Cole Haan CEO Jack Boys said in a statement. “Based on the momentum we have generated in the business and the opportunities we believe are before Cole Haan, we have determined that now is the time to prepare for an initial public offering of the company’s shares.”
Initially better known for its formal footwear, Cole Haan has expanded its offering since leaving Nike’s stable, diversifying into more casual, comfort-focused models, which have allowed the company to benefit from the ongoing athleisure trend.
The brand has gone from strength to strength over the last few years, with sales reportedly rising from $535 million in 2012 to $687 million in the fiscal year ended June 1, 2019, up 14% in the last year alone.
Adjusted earnings before interest, taxes, depreciation and amortization are also reported to have sprung up 56% to $95.3 million in fiscal 2019.
This progress has, in part, been pushed by product innovation, with the company’s ZeroGrand model, first launched in 2014, proving to be a particular favorite, but international expansion has also been an important growth driver.
The company now sells its products in more than 60 countries, with 112 owned stores in the U.S. and Canada, and 80 in Japan, as well as a further 176 distributer-run locations in other foreign markets.
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