This week, a look at the large number of acquisitions and sales happening in fashion, including what’s causing them and how they will change the fashion landscape in 2025.
The fashion market is becoming a lot friendlier to acquisitions.
This week, Vera Wang, which has been an independent brand since it was founded in 1990, was acquired by WHP Global. WHP acquired the full IP and brought Wang on board to continue overseeing the brand. Three days prior, it was reported that Capri Holdings, fresh off the tanking of its merger with Tapestry, was looking to sell off two of its biggest brands, Versace and Jimmy Choo.
And more acquisitions have taken place over the last few months. In September, Off-White was sold to Bluestar Alliance; in October, Mytheresa bought Yoox Net-a-Porter; and this month, LVMH sold off Thomas Pink, while Zalando acquired the online marketplace About You. On Wednesday, Spanish conglomerate Puig announced that, by 2031, it weill assume full ownership of Charlotte Tilbury, which it acquired a minority stake in five years ago. Meanwhile, Saks Fifth Avenue parent company HBC is getting closer to a deal to buy Neiman Marcus. That’s not to mention the many smaller acquisitions fashion companies are making, like H&M’s partial purchase of the retail tech company Voyado this week.
The ongoing series of acquisitions and sell-offs paint a picture of an industry in flux. Dried-up funding has made it harder for newer brands to get off the ground, while larger companies are looking to build out their portfolios to compete with mega conglomerates like LVMH and Kering.
Part of the reason for so many acquisitions is that it’s incredibly hard for independent brands to scale on their own. Even Vera Wang, which brings in $700 million in annual revenue, needs help. In the acquisition announcement, Wang characterized the deal with WHP as a chance for the brand to expand internationally in ways it couldn’t as an independent brand.
“Together, we will push boundaries, exploring bold opportunities to expand into new categories and markets, all while staying true to the legacy of timeless sophistication and the distinctive style that defines Vera Wang,” Wang said.
Juan Pellerano, CMO of the e-commerce company Swap, which works with brands including Article and Ed Hardy, said an acquisition is often the best way for independent designers to get the most value out of their brand.
“Amid mounting economic uncertainty and the threat of tariffs disrupting consumer behavior and supply chains, brands are seizing this critical moment to maximize their value,” Pellerano said. “By acting now, they aim to capitalize on current market conditions before the full impact of macroeconomic shifts takes hold.”
On the acquirer’s side, the favorable market for buyers means that a number of companies are trying to build up fashion portfolios, particularly in the U.S. WHP positioned the Vera Wang acquisition as the “anchor of a new premium fashion vertical” that includes WHP’s other fashion brands like Rag & Bone and G-Star. Bluestar Alliance, which acquired Off-White earlier this year, also positioned the acquisition as part of an attempt to build a stable of high-profile fashion brands. Bluestar also owns the Dutch menswear brand Scotch & Soda and Limited Too.
That same drive is what animated Tapestry’s ill-fated attempt to acquire Capri, which would have instantly made it the largest American fashion conglomerate at $8.5 billion. But the deal was tanked by the Federal Trade Commission under Lina Khan, who was more active than previous FTC heads in halting large mergers. That will likely change in the future under a Trump administration that will be friendlier to corporate mergers and acquisitions, according to Brian Yarbrough, an analyst at Edward Jones who covers Tapestry.
But large portfolios come with the risk of managing underperforming brands. That seems to be the case at Capri, where Michael Kors is outperforming its fellow brands Versace and Jimmy Choo. For Capri, selling off the two brands might be a chance to help focus on the assets in its portfolio that are worth the effort. Michael Kors makes up nearly 70% of Capri’s revenue.
“If Capri indeed sells Versace and Jimmy Choo, it signals a pivot to refocus on Michael Kors, their flagship brand,” said Kison Patel, a mergers and acquisitions expert and CEO and founder of DealRoom, which helps investors identify up-and-coming companies to invest in or acquire.
“While this move could streamline operations and provide financial breathing room, there’s risk involved,” Patel said. “Both Versace and Jimmy Choo are iconic, high-margin brands that bolster Capri’s luxury portfolio. Divesting them might improve short-term focus, but Capri must ensure Michael Kors can carry the portfolio’s growth. With the Tapestry deal off the table, the stakes are higher for Capri to demonstrate it can win in an increasingly competitive market without these marquee names.”
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