Luxury Brands Solidify Leadership Position in Apparel, Footwear & Accessories M&A Market
Capstone Partners’ most recent Apparel, Footwear & Accessories M&A Report examines how elevated levels of inflation and rapid monetary tightening has created a bifurcated market in the sector where luxury brands continue to perform well while others struggle to maintain profitability.
Luxury and high-end premium brands have successfully passed costs onto consumers, allowing them to maintain healthy margins and sales growth in a cost-conscious environment. This resilience has made the luxury brands segment particularly attractive to investors, with healthy merger and acquisition (M&A) and investment appetite in the space.
Premium and luxury sector players with entrenched customer loyalty, robust multichannel capabilities, and efficient marketing spend are poised to continue to garner healthy consumer purchases. However, supply chain issues have remained a challenge for many sector participants, complicating inventory management and leaving select companies with an overabundance of product that they have been forced to mark down. Recent turmoil in the banking sector has also added to the uncertainty in the broader retail environment as capital market volatility and credit conditions have presented additional challenges for privately held businesses seeking liquidity.
“Luxury and high-end premium brands are building on the momentum that they developed during the pandemic. Notably, their pricing power, strength across all channels, and direct relationships with the customer have allowed them to navigate choppy waters and emerge as winners in the current environment,” said Capstone Senior Director Jesse Betzner, the lead contributor in the newly released report.
Also included in this report:
- Discussion on the operating performance of leading public companies amid economic headwinds.
- Insights on buyer activity and how private equity firms are viewing the space.
- Analysis of recent key M&A deals in the sector, including strategic rationale, deal structures, and key drivers behind the transactions.
Capstone Partners’ Consumer Investment Banking Team provides M&A, capital formation, and financial advisory services to the owners of middle market businesses in the consumer and retail industries. Our team partners with leading mid-to-large sized consumer businesses that serve growing end-markets. For more information on the Apparel & Footwear M&A trends featured in this report or to speak with one of our Consumer Investment Banking Team members about how to grow, value, and/or sell your company, we are here to help. Contact us today to start a conversation.
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