These distinct designer brands all have something in common: a single parent company namedRising rates, sticky inflation and the prospect of slowing consumer spending have sparked a flurry of deals in the fashion industry as companies look to mergers and acquisitions for growth.
"Growth-oriented acquisitions really help to drive the business further, " said Dana Telsey, CEO of Telsey Advisory Group. "New designers can create interest because you can extend your customer base, whether it's extending your customer base older or younger, or extend your customer base globally."in Europe, a mega fashion brand that has aggressively expanded via acquisitions.
The popularity of online shopping has also provoked retailers to pursue mergers that promote expansion online and in stores. As social media creates new avenues for promotion, brands grappling with the high cost of celebrity endorsements are looking to expand their resources through mergers and acquisitions.