The number of mergers and acquisitions in fashion fell by 26% in the first five months of 2025

After a timidly optimistic start to the year, the global M&A market seems to have cooled, conditioned by a highly uncertain economic and geopolitical environment. These are the findings of the consulting and auditing firm PwC. According to its latest half-yearly report, the volume of M&A transactions in the consumer sector fell by 9% between January and May 2025, but their value climbed by 32% over the same period, thanks mainly to seven deals exceeding $5 billion. As a result, activity in the sector remains moderate.

Consumer market transactions down at the start of the year – PwC.com

Although a handful of high-profile deals led to a sharp rise in global transaction values at the start of the year, suggesting an upturn in business, the second half of the year should be viewed with caution. Persistent inflationary pressures, higher-than-expected long-term interest rates and expectations surrounding US tariffs have all contributed to weakening consumer confidence and investor certainty.

This widespread uncertainty is likely to prompt investors to adopt a more measured approach for the rest of the year. Added to this caution are extended transaction delays, reflecting increased attention on the part of private equity players and funds, who are reviewing their portfolios and strategies.

The Italian market, in particular, is following this global dynamic, with 158 deals announced between January and May 2025, compared with 170 over the same period a year earlier (-7%). However, it was financial investors who were particularly cautious, with deals falling by 17% over the same period, as they were particularly cautious about the fashion and food & beverage sectors.

26 deals since the beginning of the year

In the fashion sector alone, global M&A activity fell by 26% in the first five months of 2025 compared to the first five months of 2024, from 35 to 26 deals over the same period year-on-year. In 2019, there were 63 fashion transactions, compared with 78 in 2023 and 61 in 2024.

M&A transaction volumes and values in the global consumer market since 2019 – PwC

For the second half of 2025, PwC estimates that M&A in the apparel sector will be “active, but selective”. Looking at recent fashion deals, such as Authentic Brands’ takeover of Dockers from Levi’s, 3G Capital’s announced acquisition of Skechers sneakers, and Versace’s move into the Prada group, the firm believes that potential buyers will be attracted above all by well-known brands.

In Italy, apart from Prada’s big deal to acquire Versace for 1.25 billion euros from the American group Capri (Michael Kors), several other smaller-scale transactions were carried out at the beginning of the year. Firstly, investment funds focused on assets with stable performances and good cash flows, as in the Blue Pool Capital/Golden Goose, Alto Partners/Gallo and Borletti-Quadrivio/Twinset deals, but also on turnaround operations, as in the case of Bluestar Alliance, which bought Palm Angels.

At the same time, the strategy of supply chain consolidation pursued by brands, particularly in the luxury goods sector, continued, whether through buyouts or by acquiring a stake in their suppliers (Prada/Rino Mastrotto, Richemont/Maglificio Miles, Chanel/Grey Mer, Mantero Seta and Leo France, Gentili Mosconi/Manifatture Tessili Bianchi) or through acquisitions by financial investors in the production chain (Armonia/Millefili, Sienna SA/Vicenza Mode and J Jardin/Nanan).

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