In this Apparel & Accessories M&A Industry Update, we explore the M&A activity and projections for this sector within the Consumer industry. Our Consumer Practice share their insights on the current state of the Apparel & Accessories M&A market and share projections for the future.
Select Insights:
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- U.S. consumers continue to demonstrate robust spending behavior despite headwinds from rising prices, high interest rates, and economic uncertainty. Key drivers likely include the strong job market, wage growth, and savings spend. Trailing Twelve Month U.S. Consumer Spending has shown consistent quarter-over-quarter growth during the last year, with 1Q24 showing the largest increase at 1.5%. Specifically, the Jewelry and Watches category surpassed the average at 2.5% for the quarter.
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- University of Michigan’s Consumer Sentiment Index rose in March to 79.4. This was an increase of 3.3% over the prior month, a 28.1% increase over March 2023, and the highest rating since July of 2021. The Index measures how optimistic consumers are about the economy and their finances based on a survey of 500 households each month.
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- Consumer Excess Savings, as measured by the Federal Reserve Bank of San Francisco, showed a significant decrease in 1Q24 to -$72 billion. This is a significant drop in savings from the high of $2.1 trillion measured in August 2021. With excess savings depleted, there is much speculation as to how that will affect consumer spending trends in the coming quarters.
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- In 1Q24 wages outpaced inflation by 0.3%. Wage growth has outpaced Inflation since early 2023, a trend that has helped bolster the spending power of U.S. consumers. Although this is a favorable trend, for most of the two prior years the situation was reversed, so wages may still have some ground to make up.
To read the full Apparel & Accessories Industry Update, download below
If you are interested in discussing any of the analysis from this report, or if you would like to discuss your own transaction goals contact the Managing Director from our Consumer Industry Practice Group below, or reach out at (800) 849-7010 or [email protected] to be directed to the appropriate team member.
About the Authors:
Carl Miller
Managing Director, Consumer Practice
(858) 284‑0449
Disclosure
This news release is for informational purposes only and does not constitute an offer, invitation or recommendation to buy, sell, subscribe for or issue any securities. While the information provided herein is believed to be accurate and reliable, Objective Capital Partners and BA Securities, LLC make no representations or warranties, expressed or implied, as to the accuracy or completeness of such information. All information contained herein is preliminary, limited and subject to completion, correction or amendment. It should not be construed as investment, legal, or tax advice and may not be reproduced or distributed to any person. Securities and investment banking services are offered through BA Securities, LLC Member FINRA, SIPC. Principals of Objective Capital are Registered Representatives of BA Securities. Objective Capital Partners and BA Securities are separate and unaffiliated entities.
