In 2023, there was no shortage of funding in the fashion industry. Despite challenges such as inflation, economic fluctuations and geopolitical uncertainties, investors’ appetite for stocks of luxury companies, e-commerce platforms and brands that promise high returns was strong.
November December
Two notable deals centered around Farfetch. The first, announced in November, involved a $1.15 billion (1.03 billion euros) merger between Swiss luxury group Richemont, Chinese e-commerce giant Alibaba and Farfetch. However, just a few weeks later, this plan was abandoned when the South Korean e-commerce company Coupang acquired Farfetch for 500 million US dollars (449 million euros).
In 2023, several significant mergers and acquisitions took place in the United States. The long-awaited IPO of German shoe giant Birkenstock on the New York Stock Exchange in November valued the company at $8.3 billion (7.45 billion euros). In August, Tapestry, the US group that owns Kate Spade, Coach and Stuart Weitzman, announced the acquisition of Capri Holdings for $8.5 billion (€7.63 billion). Capri Holdings is the parent company of Versace and Jimmy Choo.
In December, Givenchy announced it was parting ways with creative director Matthew Williams. However, that didn’t stop Hong Kong billionaire Adrian Cheng from purchasing a majority stake in Williams’ 1017 Alyx 9SM label on November 30, with the aim of fueling the brand’s expansion in key markets. Kering also made important moves in November, completing the acquisition of a 30 percent stake in Valentino.
Frasers Group demonstrated its commitment to becoming a leading British player with two major acquisitions in 2023: In June, the group acquired a 5 percent stake in Boohoo, which it later increased to 16.5 percent. In December, the group acquired luxury retailer Matches from Apax Partners for £52 million (€60 million) to strengthen its position in the higher fashion segment.
October
Chinese fast fashion giant Shein filed for a U.S. IPO in November and acquired British brand Missguided from Frasers in October. In October, Indian company Reliance Retail announced it would acquire Superdry’s licenses and brand assets in three Asian countries for £40 million (€46 million).
British clothing company Next continued its acquisition spree, announcing in October that it would acquire lifestyle brand FatFace for £115.2 million (€132.4 million).
August
August was a busy month for investors. On the one hand, Rolex made headlines with its acquisition of the luxury watch manufacturer Bucherer for an undisclosed sum. At the same time, Forever 21 and Shein announced a collaboration to acquire about 30 percent of Sparc Group — Sparc operates Forever 21 and is a joint venture between Authentic Brands Group (ABG) and US retail giant Simon Property Group.
Additionally, JD Sports made significant acquisitions in August. The company acquired the remaining 40 percent stake in MIG, a Polish retail chain. This acquisition was a strategic move for JD Sports, allowing the company to expand its presence in Central and Eastern Europe through the opening of new stores and increased investment in omnichannel resources.
July
In July, the Swiss luxury group Richemont secured a majority stake in the Italian shoemaker Gianvito Rossi. That same month, Kering acquired a 30 percent stake in Valentino in a deal valued at $1.87 billion (1.68 billion euros). According to the official statement, the agreement includes an option for Kering to acquire all of Valentino’s share capital by 2028.
Also in July, Kim Kardashian secured $270 million (€242.6 million) in a Series C financing round for her brand Skims, which was valued at $4 billion. The shapewear company has expressed its intention to use the funds to address inventory management challenges and improve competitiveness against other market offerings.
June
In June, Authentic Brands Group (ABG) raised $500 million (€449 million), resulting in a valuation of over $20 billion (€18 billion). ABG said the company plans to use the funds for global expansion, diversification across categories, collaboration with licensing partners, exploration of new regions and expansion of distribution channels. In the same month, ABG acquired the intellectual property of the traditional British brand Hunter, known for its cult rubber boots. The value of the transaction is estimated at around 125 million US dollars (112 million euros).
Frasers Group also made strategic moves in June by increasing its stake in Asos to 10.5 percent, almost doubling its original investment of 5.5 percent.
May
In May, Shein raised $2 billion (1.8 billion euros) in a financing round led by Sequoia Capital, General Atlantic and the United Arab Emirates’ sovereign wealth fund Mubadala.
That same month, Marks & Spencer announced additional financial support for Nobody’s Child, an eco-conscious fashion brand in which the British company acquired a 27.5 percent stake in 2021.
Meanwhile, British discount platform Secret Sales successfully acquired $10 million (€9 million) in a Series B round and plans to use the funds to expand in Europe.
Additionally, JD Sports made a strategic move in May that is part of its plan to become a global force in fashion and sports retail. The company acquired French retailer Groupe Courir, which operates 313 stores in six countries. This acquisition is in line with JD Sports’ strategy to expand.
April
In April, Vince Holding Corp and Authentic Brands Group (ABG) entered into a strategic partnership worth $76.5 million (€68.7 million) in cash. As part of this partnership, ABG acquired Vince’s intellectual property, which is now known as ABG Vince.
That same month, ABG expanded its portfolio by acquiring Boardriders, a well-known sports and lifestyle company with multiple brands including Quiksilver, Roxy and Billabong.
In a complex transaction, Walmart sold its men’s clothing business Bonobos to US fashion retailer Express and New York brand management firm WHP Global for $76 million (€68 million) in April.
March
British group Next took over Cath Kidston in March after the company was placed into administration for the second time in two years. As part of the acquisition, Next acquired the brand name, domain names and intellectual property. Four stores that are to be sold after the inventory has been sold were not taken over.
Also in March, DressX, a virtual closet featuring exclusively digital clothing, NFT fashion items and augmented reality outfits, secured $15 million (€13.5 million) in Series A funding .
February
The respected British tailor Peckham Rye, founded in 1795 in the London borough of the same name, has been bought by Brand Machine Group (BMG), a company that manages licensed labels and owns various brands.
In another notable transaction, Wolverine World Wide Inc. sold the Keds brand to footwear retailer Designer Brands. As part of the agreement, the financial terms of which were not disclosed, Designer Brands received an exclusive license to Hush Puppies shoes in the United States and Canada.
January
In January, Spatial Labs received $10 million (€9 million) in seed funding for next-generation technologies that connect brands with younger demographics.
This article originally appeared on FashionUnited.uk. Translated and edited by Simone Preuss.