Apparel, Footwear & Accessories M&A Report – July 2026

Strong Tailwinds Bolster Sector Demand, Strategics Buoy Apparel & Footwear M&A

Capstone Partners’ most recent Apparel, Footwear & Accessories M&A Report reports that merger and acquisition (M&A) activity in the sector has gained momentum year to date (YTD), supported by strong activity in the Accessories and Footwear segments. Although macroeconomic conditions have continued to pressure discretionary spending, weight loss drug adoption, health and wellness prioritization, dress code casualization, and athleisure penetration have catalyzed wardrobe refreshes and activewear spending. These trends are expected to persist through year end and into 2027, bolstering the Apparel & Footwear M&A market outlook.

Sector deal activity has regained momentum to date following a market contraction in 2025. Total deal volume has jumped 21% year-over-year (YOY) to 75 transactions announced or closed YTD. Key trends shaping the sector’s M&A environment over the last few years have continued to place downward pressure on activity despite the increase in headline acquisition volume. Poor consumer and CEO confidence, sticky inflation, and broader market volatility—namely tariffs, geopolitical tensions, artificial intelligence disruption, and private credit uncertainty—have weighed indiscriminately across M&A markets, including in the Apparel, Footwear & Accessories space. As a result, deal flow in the sector has bifurcated, with businesses tied to discretionary spending, fashion risk, supply chain shocks, and wholesale dependence seeing weaker performance and softer acquisition appetite. In contrast, strong brands with recession-resistant business models and operations have continued to transact at healthy prices.

Accessories has undoubtedly been the hottest segment to date with deal volume rising 200% YOY. Accessories businesses have capitalized on self-expression and personalization trends driving style evolution. Beyond traditional accessories—such as hats and handbags—this segment captures a broader set of functional products including technology-enabled wearables, sporting goods, and other outdoor activities, which have benefitted from tailwinds related to youth sports engagement, health and wellness, and increased outdoor participation.

Private equity (PE) firms have remained risk-averse in the sector, with platform transactions falling 50% YOY to account for just 6.7% of the total Apparel & Footwear M&A market. However, these buyers have continued to pursue add-ons, which have ticked up by one deal YOY. Private strategics have filled the gap left by the slowdown in PE platforms. Private-led deal volume has surged 52.9% YOY to 52 transactions YTD—bringing this cohort’s M&A market share to 69.3%, the highest level on Capstone’s record since 2017. Meanwhile, public company acquisitions have held stable to date, falling by just one deal YOY. Capstone expects a reacceleration in the M&A market if consumer confidence and appetite for spending improve, geopolitical instability moderates, and inflation eases.

“Licensing-focused brand platforms have emerged as increasingly active acquirers in the Apparel sector, driving M&A activity through their asset-light model of acquiring established brands and unlocking value through global extendibility, distribution, and category expansion,” said Capstone Senior Director Jesse Betzner, the lead contributor in the newly released report.

Also included in this report:

• Details regarding key demand drivers bolstering sector health and which pockets of the market have seen strength as a result.
• An analysis of Apparel & Footwear M&A market activity across buyer cohorts and target segmentation, including PE trends over time and brand management company acquisitions.
• Sector M&A EBITDA multiples benchmarked to the wider Consumer Industry.