The most recent Apparel, Footwear & Accessories M&A Report from Capstone Partners suggests that merger and acquisition (M&A) activity in the Apparel, Footwear & Accessories sector has gained momentum for the year-to-date period ended June 1, 2026 (YTD), said to be supported by strong activity in the Accessories and Footwear segments. Total deal volume has reportedly jumped 21 percent year-over-year to 75 transactions YTD, according to the Capstone report.

“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,” the investment banking firm said in its July 2026 report. Capstone said these trends are expected to persist through year-end and into 2027, bolstering the Apparel & Footwear M&A market outlook.

Sector deal activity has reportedly regained momentum in the first half of 2026 year-to-date (YTD), following a market contraction in 2025. Total deal volume has jumped 21 percent year-over-year to 75 transactions announced or closed year-to-date. Capstone said 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. Further, poor consumer and CEO confidence, sticky inflation, and broader market volatility — namely tariffs, geopolitical tensions, artificial intelligence disruption, and private credit uncertainty — were called out as weighing indiscriminately across M&A markets, including in the Apparel, Footwear & Accessories space.

“As a result, deal flow in the sector has bifurcated,” the firm said, “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 were called out as continuing to transact at healthy prices.

“Accessories has undoubtedly been the hottest segment to date with deal volume rising 200 percent year-over-year, Capstone noted. “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.”

Capstone said private equity (PE) firms have remained risk-averse in the sector, with platform transactions falling 50 percent year-over-year to account for just 6.7 percent of the total Apparel, Footwear & Accessories M&A market. However, the firm noted that these buyers have continued to pursue add-ons, which have ticked up year-over-year.

“Private strategics have filled the gap left by the slowdown in PE platforms,” Capstone wrote. “Private-led deal volume has surged 52.9 percent year-over-year to 52 transactions YTD — bringing this cohort’s M&A market share to 69.3 percent, the highest level on Capstone’s record since 2017.”

On the other hand, public company acquisitions have held stable to date, falling by just one deal year-over-year.

Other key call-outs in the report include:

  • Strategics, namely brand management companies like Authentic Brands Group, Marquee Brands, WHP Global, Bluestar Alliance, and American Exchange Group, have accelerated acquisitions, moved upmarket and helped fill the gap left by the slowdown in PE platform activity. Top brand aggregators have collectively announced or completed 29 acquisitions in the Apparel, Footwear & Accessories space since 2023, according to the latest report.
  • Premium heritage brands and high-growth activewear targets, with niche dominance and  full price sell-through, have buoyed sector valuations while distressed assets, mature brands and carveouts have put downward pressure on M&A pricing.
  • Middle market apparel M&A activity remains robust for differentiated brands, with well-capitalized strategic acquirers and deep-pocketed PE investors actively pursuing market leaders, creating a compelling environment for owners to pursue liquidity events or growth partnership opportunities.

Capstone said it expects a re-acceleration 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.

Capstone Partners said it has “developed a full suite of corporate finance solutions to help privately-owned businesses and private equity firms navigate through each stage of a company’s lifecycle.”

To download the full report from Capstone Partners, go here.

Image courtesy Authentic Brands Group/Data and graphics courtesy Capstone Partners