Pockets of Resilient Consumer Spending Fuel Substantial Apparel & Footwear M&A

BOSTON, MA, U.S., August 1, 2024 /EINPresswire.com/ — Capstone Partners, a leading middle market investment banking firm, released its July 2024 Apparel, Footwear, & Accessories Update, reporting that Apparel & Footwear M&A has returned, with transaction volume growing 28.8% year-to-date (YTD) compared to the prior year period.

While strategic buyers have comprised the majority of acquirers in the space, sector mergers and acquisitions (M&A) have also been buoyed by a resurgence in private equity platform deals, exemplifying investors’ optimistic outlook on the strength of the consumer.

Sector sales growth has tapered, but pockets of resilient spending have fueled M&A appetite as brands look to adapt to shifting spending patterns and consumer preferences. Jewelry segment participants have captured healthy sales growth, capitalizing on consumers’ growing preferences for self-gifting and self-expression.

Branded jewelry makers have seen continued market share gains due to the shifts in consumer behavior. The segment’s resilience amid sector-wide growth moderation has fueled both incumbent and middle market M&A as firms look to establish a strong foothold in the increasingly fractured market. M&A volume to-date in the segment has tripled year-over-year (YOY).

Footwear spending has tapered in recent periods and growth drivers are once again top-of-mind for management teams. Footwear companies with strong customer loyalty, innovative products, and omnichannel capabilities are poised to capture healthy sales volume and garner significant buyer attention from strategics in the space. Footwear M&A has posted 62.5% YOY growth, on pace to beat historical dealmaking annual averages in the segment.

Rapidly changing consumer behavior, spending headwinds, and deteriorating pricing power are expected to fuel robust Apparel, Footwear, & Accessories M&A in the near- to mid-term. As credit markets soften, the already burgeoning sponsor activity will likely continue as fund managers exit existing portfolio companies and look to establish new platforms.

“Several factors are converging to drive continued momentum in the Jewelry category, including the rise of self-gifting and self-expression. A large market with strong underlying growth drivers yet also poised for disruption, the category is drawing increasing investor recognition and should continue to see capital inflows,” said Capstone Senior Director Jesse Betzner, the lead contributor in the newly released report.

Also included in this report:

• How segment participants are addressing shifting consumer preferences and spending patterns to maintain and bolster profitability.

• What public company has showcased successful growth strategies garnering investor attention.

• A breakdown of recent M&A activity in the sector, and key drivers behind the transactions.

To access to full report, click here.

ABOUT CAPSTONE PARTNERS

For over 20 years, the firm has been a trusted advisor to leading middle market companies, offering a fully integrated range of investment banking and financial advisory services uniquely tailored to help owners, investors, and creditors through each stage of the company’s lifecycle. Capstone’s services include M&A advisory, debt and equity placement, corporate restructuring, special situations, valuation and fairness opinions and financial advisory services. Headquartered in Boston, the firm has 175+ professionals in multiple offices across the U.S. With 12 dedicated industry groups, Capstone delivers sector-specific expertise through large, cross-functional teams. Capstone is a subsidiary of Huntington Bancshares Incorporated (NASDAQ:HBAN). For more information, visit www.capstonepartners.com.

For More Information Contact:
Jesse Betzner
Senior Director
617-619-3355
[email protected]

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Rebecca Levesque
Capstone Partners
+1 781-775-8794
email us here