The fashion industry is in the midst of a dealmaking surge, with 75 mergers and acquisitions recorded in the first seven months of 2026, according to a new report from Capstone Partners. The investment banking firm’s midyear analysis reveals a sector in active consolidation, driven primarily by brand management companies acquiring heritage labels and footwear brands.
Strategics accounted for the majority of transactions, with firms like Authentic Brands Group, WHP Global, and Bluestar Alliance leading the charge. These acquirers are targeting established names with latent brand equity, buying them at measured multiples and extracting value through licensing, category expansion, and international distribution.
Valuations have crept upward as competition for quality targets intensifies. Capstone noted that sellers who hesitated during the 2024–2025 slowdown are now finding a more favorable market, with multiple bidders often circling the same asset. Debt financing, while still relatively expensive, has become more accessible than it was 18 months ago.
The report’s authors expect the pace to accelerate into the second half of the year, noting that several large processes are underway. If the current trajectory holds, 2026 will surpass 2025’s total deal volume and may approach the peak levels of 2021, though at more disciplined price points.
The footwear and accessories category dominated deal flow, representing roughly a third of all transactions. Activewear and outdoor brands also saw elevated activity as consumers continue to prioritize versatile, function-first wardrobes. Luxury deals, by contrast, were fewer but larger in average value.
