Market Monitor: Apparel, Accessories & Footwear
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Market Monitor:
Apparel, Accessories & Footwear
Making the right decisions for your business starts with having the most accurate and current information available. Our Apparel, Accessories and Footwear Market Monitor keeps you up to date on the events, trends, and market forces that shape and guide the industry’s M&A trends.
Industry M&A Update
Strong Retail Sales Drive Market Confidence
In October 2023, retail sales in the Apparel, Accessories, and Footwear sectors grew by 8.5% year-over-year (YoY), according to the latest CNBC/NRF Retail Monitor report. This jump in sales reflects strong consumer demand, supported by job gains and higher wages. NRF President and CEO Matthew Shay pointed out that inflation now mainly affects services, while prices for some retail goods are falling. This sets a positive tone for the holiday shopping season and boosts confidence in the industry.
Valuations Rise: Strong M&A Opportunities Ahead
As of November 2024, valuations for publicly traded companies in the Apparel, Accessories, and Footwear industries have exceeded their three-year averages. This indicates strong investor confidence and growing interest in M&A deals. Elevated valuations, combined with the sector’s growth, create ideal conditions for mergers, acquisitions, and strategic partnerships in 2025.
M&A Activity Set to Increase in 2025
With strong market conditions and healthy consumer spending, the M&A landscape in the Apparel, Accessories, and Footwear industries is heating up. Many companies are actively exploring opportunities to expand through acquisitions or seek strategic exits. As competition for acquisition targets intensifies, we expect to see a significant rise in deal activity in 2025.
Why Q1 2025 Is the Right Time for M&A
Companies looking to capitalize on the strong market conditions should consider entering the M&A field in early 2025. Many brands will be looking for exits, and Q1 will be the best time to act before the market becomes saturated. Entering early can help secure favorable terms and position your business to benefit from the coming surge in M&A activity.
For more information or questions, please contact our contributors:
Rich Anderson, Managing Director: [email protected]
Tyler Dale, Managing Director: tdale@
Johnny Sherwood, Director: jsherwood@
Brennan Anderson, Vice President: banderson@