Apparel and Footwear M&A Market Analysis

This report presents an analysis of the Apparel, Footwear, and Accessories sector, focusing on the current state of mergers and acquisitions (M&A) as of December 2025. The document outlines a year-over-year decline in M&A activity, attributed to strategic buyers withdrawing from the market, while sponsor-backed acquisitions have seen a rise. It details that sector M&A activity has decreased by 14.6%, with a total of 135 transactions reported. Despite challenges, the report notes that private equity firms are expected to increase deal-making in 2026 as clarity around tariffs improves. The document highlights consumer spending trends, indicating a divergence in financial health among income groups, with higher-income households maintaining spending levels. Additionally, it emphasizes the denim market's growth, driven by casualization and Americana trends, projecting significant revenue increases in the coming years. The report concludes with insights into operational strategies for businesses navigating the evolving market landscape.