Apparel, Footwear & Accessories M&A Report – December 2025

Apparel & Footwear M&A Falls, Strategic Acquisitions Remain Subdued

Capstone Partners’ most recent Apparel, Footwear & Accessories M&A Report reports that merger and acquisition (M&A) activity in the sector has declined to date year-over-year (YOY) as many business owners have remained hesitant to pursue inorganic growth strategies despite the more stable International Trade landscape through the latter half of 2025.

The Apparel, Footwear & Accessories sector is expected to see a challenging near-term backdrop for sales amid consumer spending headwinds. Consumers at the top end of the income spectrum have remained resilient, while lower-income households have navigated accelerating financial strains due to slowing wage growth, inflationary headwinds, a tight Labor market, and the resumption of student debt payments eating into disposable income. Despite this pressure on lower income consumers, discretionary spending on digestible, small- and mid-sized ticket items will likely prove steadier than purchases of big-ticket items. Consumers have displayed a strong willingness to engage with new and emerging brands, supporting prospects for middle market sector operators. For business owners, tariff mitigation strategies, the ability to pass cost increases onto consumers (without eroding demand) to preserve margins, and fashion risk control have remained core components of operational management moving into 2026.

Also included in this report:

• An overview of sales figures from key categories in the Apparel, Footwear & Accessories market.
• A segment highlight on the Denim category, which has proved a bright spot in the sector.
• A detailed analysis of M&A volume, including a breakdown of activity by buyer type and valuation analysis.
• A summary of key Apparel & Footwear M&A deals through YTD 2025.