Deloitte: Luxury mergers and acquisitions lose momentum in 2024, yet remain attractive to investment funds

After the global economic recovery following the Covid-19 pandemic, there has been a noticeable slowdown in the fashion and luxury sectors regarding mergers and acquisitions in the past couple of years. Despite this slowdown, these industries continue to pique the interest of about ninety percent of investors in 2025, with a key focus on potential issues related to customs duties. This insight stems from the most recent report released by Deloitte, titled “Fashion & Luxury Private Equity and Investors Survey 2025”, offering a glimpse into the upcoming trends set for publication at the end of September.

The survey, encompassing feedback from 60 private equity investors and over 114 businesses active in various luxury areas such as Clothing & Accessories, Watches & Jewellery, Cosmetics & Fragrances, luxury automobiles, hotels, private aviation, cruises, interior furnishings, yachts, and high-end dining experiences, shed light on the landscape of the market. In the year 2024, the luxury sector witnessed a total of 308 transactions, a decline from 333 transactions in the previous year, indicating a decrease of 25 deals from year to year. Notable events include the acquisition of the luxury digital platform Yoox Net-a-Porter Group (YNAP) by Mytheresa, a German e-commerce entity, from Swiss luxury powerhouse Richemont. Additionally, the merger plan between US-based giants Capri, the parent company of Michael Kors, and Tapestry, the parent company of Coach, did not come to fruition. The initial months of 2025 saw the sale of Versace to Prada Group for 1.25 billion euros, underscoring the ongoing sluggish pace of deals, with only 162 transactions completed as opposed to the 188 transacted in the same period of the previous year, marking a 14% decrease.

In the exclusive luxury goods realm, which accounts for over forty percent of all transactions, the number of deals sealed in the past year saw a modest decrease of 6.3%. Specifically, clothing & accessories, the foremost sector in terms of M&A activity, tallied a total of 85 transactions in 2024, a decrease of 20 compared to the year prior. Similarly, the watches & jewellery sector saw 15 transactions in 2024, a slight decrease from the 17 deals in the previous year. Contrarily, cosmetics & fragrances experienced an upward trajectory, soaring from 21 to 34 dealings within a single year, marking a thirteen percent increase.

Overall, the softening trend in mergers and acquisitions within the luxury industry, attributed to various factors including economic uncertainty and shifting consumer behaviors, continues to shape the market landscape, indicating both challenges and opportunities for investors and businesses aiming to navigate through this evolving terrain.