Fashion
Luxury: mergers and acquisitions slow in 2024 but still appeal to investment funds, says Deloitte
Published
September 17, 2025
After the post-Covid recovery, mergers and acquisitions in the fashion and high-end sectors have slowed over the past two years. Even so, despite the economic climate, the sector continues to attract nine out of ten investors in 2025, although most are concerned about customs duties.
These are the findings of Deloitte‘s latest report, “Fashion & Luxury Private Equity and Investors Survey 2025″, which previews the main trends ahead of its publication on September 25.
The survey was conducted worldwide across a panel of 60 private equity investors and more than 114 companies active in the fields of Clothing & Accessories, Watches & Jewellery, Cosmetics & Fragrances, luxury automobiles, luxury hotels, private jets, cruises, furnishings, yachts and luxury restaurants.
In 2024, the high-end segment recorded 308 deals, compared with 333 in 2023, that is 25 fewer year on year. Notably, last year saw the acquisition of luxury platform YNAP by German e-commerce firm Mytheresa from Swiss luxury group Richemont, while the planned merger between US giants Capri, owner of Michael Kors, and Tapestry, owner of Coach, fell through. The first half of 2025, marked by the acquisition of Versace by the Prada Group for €1.25 billion, confirms the general slowdown, with only 162 transactions compared with 188 a year earlier, a decline of 14%.
In the luxury goods segment alone, which accounts for 40.2% of total transactions, the number of deals closed last year fell by 6.3%. Breaking it down: clothing & accessories, the most attractive M&A sector, totalled 85 transactions in 2024, 20 fewer than the previous year. Similarly, watches & jewellery saw 15 deals in 2024, compared with 17 a year earlier. Only cosmetics & fragrances bucked the trend, jumping from 21 to 34 deals in one year (+13).
Leading the overall ranking for 2024, as usual, are luxury hotels, with 145 transactions (+1), followed by clothing & accessories (an industry that remains attractive nonetheless), then furnishings with 23 deals (+10), and yachts and automobiles with 11 each (-5 for the former and -13 for the latter between 2023 and 2024).
For 2025, “despite a macroeconomic and geopolitical context that remains marked by high uncertainty, the fashion and luxury sector continues to attract investor interest. 92% of funds are considering transactions in this sector, albeit more cautiously than last year,” said Elio Milantoni, a partner at Deloitte, in a press release.
“More than half are directing their strategies towards medium-sized companies, with the aim of encouraging a process of consolidation in the sector. At the same time, we are seeing a shift in investment preferences towards segments complementary to the world of fashion and luxury goods”, he continued.
In terms of size, the average value of M&A deals completed in 2024 is around €260 million, slightly down on 2023 (-4%), with an ever-greater focus on medium-sized targets, confirming the growing interest in medium-sized transactions.
Another trend identified by the consultancy is the concern around customs duties. Eight out of ten investors surveyed believe this issue will have a negative impact on the market, with North America (35%), Europe (33%) and Asia (29%) seen as the regions most exposed to rising trade barriers.
Geographically, investors still see Europe (75%) as the region with the greatest potential for luxury transactions, followed by North America (23%). In 2024, Europe accounted for the highest number of deals (210), 14 more than in 2023, while North America recorded only 54 (-23) and Asia-Pacific just 33 (-29).
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According to updated Eurosystem staff projections, headline inflation is expected to average 2.1 per cent in 2025, easing to 1.9 per cent in 2026 and 1.8 per cent in 2027, before returning to 2.0 per cent in 2028. Inflation excluding energy and food is forecast at 2.4 per cent in 2025, gradually declining to 2.0 per cent by 2028. Inflation for 2026 has been revised upward, mainly due to expectations that services inflation will fall more slowly than previously anticipated, the Governing Council of the ECB said in a press release.
European Central Bank has kept its key interest rates unchanged, maintaining confidence that inflation will stabilise at the 2 per cent target.
Updated projections show inflation easing gradually over the coming years, with a slight upward revision for 2026 due to persistent services prices.
Economic growth forecasts have been revised higher, supported by stronger domestic demand.
The ECB also revised its economic growth outlook higher compared with its September projections. Growth is now expected to reach 1.4 per cent in 2025, 1.2 per cent in 2026 and 1.4 per cent in 2027, with expansion projected to remain at 1.4 per cent in 2028. The improvement is driven largely by stronger domestic demand across the euro area.
The Council reiterated its commitment to ensuring that inflation stabilises sustainably at the 2 per cent target. It emphasised that future monetary policy decisions will remain data-dependent and assessed on a meeting-by-meeting basis, without pre-committing to any specific interest rate path.
Fibre2Fashion News Desk (KD)
Vera Bradley reported Q3 net revenues of $62.3 million, down from $70.5 million year over year.
Direct revenues fell 5.3 per cent, with comparable sales down 5.8 per cent, while indirect revenues dropped 30.2 per cent.
Gross margin declined to 42.1 per cent, impacted by inventory write-downs and higher duties, despite early progress from its Project Sunshine transformation.
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