Nike Once Abandoned Her Son To Make A Comeback, Cole Haan Is Ready To Go Public.

In August 26th, the US lifestyle brand Cole Haan, the main footwear company, announced that the company had negotiated with the investment bank to prepare for IPO related issues, but did not disclose the specific time to market.

Information on the listing of footwear brands has been minimal. Since Nike (Nike) was launched in 1980, only 13 footwear brands have been successfully launched in the US. However, since the Crocs of leisure shoes and Heelys were launched in 2006, no new shoe brand has been listed in the US.

Jack Boys, chief executive of Cole Haan, said the management team is very confident in brand development. Based on brand potential and current business performance, they think it is a good time to do IPO.

Cole Haan, founded in 1928 by Trafton Cole and Eddie Haan, is a well-known lifestyle brand in the United States. Its main products are footwear, clothing and accessories for men and women, headquartered in New York and New Hampshire Greenland. In 1988, the brand was bought by Nike, an American sports apparel giant.

At that time, Cole Haan's products were mainly made of formal shoes. With the change of fashion trend, sports shoes become the new favorite of consumers, and the business growth of Cole Haan gradually slows down. In 2012, Nike announced its withdrawal, and private equity fund Apax Partners Worldwide LLP took over Cole Haan at a price of US $570 million.

After breaking up with Nike, Cole Haan gradually realized that the trend of sports and leisure has become the mainstream of fashion. They need to integrate the beauty of sports into the brand of formal shoes before they can get the favor of consumers. Later, the CEO of Nike skateboard shoes Converse (CONVERSE), Jack Boys and brand chief marketing officer David Maddocks, joined Cole Haan. Through a series of reforms, the brand helped to get a firm foothold in the competitive apparel market.

After Jack Boys took over, Cole Haan invested heavily in market research and new product development. In 2014, it launched a series of ZeroGrand lightweight shoes that combine formal shoes design with soft bottom of sports shoes. Later, they applied this design to brand sports shoes and women's shoes. According to Moody 's Investors Service statistics, sales of sports shoes for Cole Haan have increased from 1% of total sales in 2015 to 19% of total sales.

In addition to product improvement, Jack Boys has also helped brands expand internationally. At present, Cole Haan has a footprint of over 60 countries, has 112 stores in the United States and Canada, has 80 stores in Japan, and has opened 176 stores in other countries and distributors.

In the last fiscal year ending June 1, 2019, Cole Haan sales increased 14% to $687 million compared to the previous year, and EBITDA (interest tax depreciation and amortization profit) increased 56% to 95 million 300 thousand US dollars over the same period.

Moody 's Investors Service said that although the retail environment was bad, Cole Haan had closed some poor stores in fiscal year 2018 in order to ensure profitability. But thanks to the increase in advertising, digital marketing and e-commerce investment, the brand's business grew very rapidly. In North America, brand line sales account for 30% of total sales, and profit margins are higher than those of stores.