Introducing the latest Apparel & Accessories M&A Industry Update, featuring detailed market analytics, transaction volumes, valuations, and key economic factors influencing the current Consumer Apparel landscape. Our Consumer Practice highlights essential insights from Q2’s market activity, offering a clear outlook for business leaders.
Top 5 Takeaways from Q2 2024 Apparel & Accessories Industry Update:
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Apparel & Accessories Spending Shows Resilience to Economic Headwinds
Despite economic uncertainty and inflationary pressures, consumer spending in the Apparel & Accessories sector has shown resilience. Spending on clothing and footwear increased modestly in Q2 2024. This growth is likely supported by wage increases that continue to outpace inflation. -
Impact of Depleted Savings
Consumer excess savings have continued to decline, falling to -$372 billion in Q2 2024 from a peak of $2.1 trillion in September 2021. This depletion could impact future consumer spending, as it indicates that consumers may have less financial cushion to rely on in the coming months. -
Footwear and Diverse Apparel Show Strongest Valuation Multiple Growth
In Q2 2024, Footwear and Diverse Apparel companies saw the most significant growth in valuation multiples on average. However, Activewear and E-Commerce Apparel companies generally continued to maintain higher overall multiples, outperforming other categories and the broader S&P 500. -
M&A Activity Slowed in Q2 2024
M&A activity in the Apparel & Accessories industry declined in Q2 2024, with the number of transactions dropping significantly compared to Q1 2024. Financial acquirers, in particular, showed caution, possibly due to the anticipation of future interest rate cuts that could lower the cost of capital. -
Omnichannel Continues to Drive Financial Health and Buyer Interest
Companies with a strong omnichannel presence continue to demonstrate leading financial performance and attract significant buyer interest. By successfully integrating DTC strategies with physical store expansions, these companies have created a balanced channel mix that enhances profitability and improves customer engagement.
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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 Directors from our Consumer Industry Practice below, or reach out at (800) 849-7010 or [email protected] to be directed to the appropriate team member.
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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.
