After getting off to a slow start in the beginning of 2024, deal activity in the consumer space — including in footwear — picked up towards the end of 2024.
According to a recent report from PwC, consumer market deal activity was up 4 percent in the second half of 2024, compared to a 4 percent decline in the first half of the year. And this growth is on track to continue into 2025, as executives seek out inorganic growth strategies to counter price stagnation and slower consumer demand.
Despite the slow start, there were some big deals in the shoe and retail space throughout 2024. Perhaps most notable was JD Sports’ July acquisition of Hibbett Sports, which added 1,179 stores to the retailer’s fleet.
Below is a quick look at some of the most notable M&A deals that were announced* in 2024. (*Not all deals had closed as of press time.)
European retailer JD Sports, winner of the 2024 FNAA for best retailer, said in April that it planned to acquire Hibbett Sports as part of its efforts to dig deeper into the U.S. market. At the time, JD said it intended to acquire 100 percent of Hibbett, implying an enterprise value of $1.11 billion. As a result of the deal, which closed in July, JD now operates 2,500 stores in the U.S., which includes 1,179 Hibbett stores that were added to its portfolio.
In July, giant eyewear group EssilorLuxottica announced it had reached an agreement with VF Corporation to acquire the Supreme brand for $1.5 billion in cash. The transaction was expected to close by the end of the year, subject to customary closing conditions and regulatory approvals. VF Corp. bought Supreme for $2.1 billion in 2020. The Supreme brand runs a digital-first business and operates 17 stores in the U.S., Asia and Europe.
In early January 2024, Authentic Brands Group announced that it acquired Sperry, the heritage boat shoe brand, from Wolverine Worldwide. Authentic also inked a deal with the Aldo Group to serve as Sperry’s North American operating partner for wholesale, e-commerce and store operations, as well as the brand’s partner for footwear design, production and distribution globally. Wolverine said in a statement that the transaction closed on January 10, and would generate total proceeds of approximately $130 million in the first quarter to pay down debt.
After a years-long pursuit and endless speculation, Richard Baker’s Hudson’s Bay Co. in July was said to have reached a definitive agreement to buy Neiman Marcus Group for about $2.65 billion, bringing the luxury department store together with Saks Fifth Avenue, according to sources familiar with the transaction. The deal was finalized in late December for a total enterprise value of $2.7 billion. Amazon was an investor in the deal, as were private equity giants Apollo and Salesforce
Nearly a year after Deckers Brands announced its intention to divest Sanuk, the outdoor lifestyle shoe brand was sold to Canadian active company Lolë Brands. Terms of the deal, which closed on Aug. 15, were not disclosed. According to Todd Steele, chief executive officer of Lolë, when the company heard that Deckers was selling Sanuk, it “jumped” at the opportunity. Steele said he saw potential to expand Sanuk’s consumer base as well as its core product assortment.
Shoe Carnival in February expanded its retail network with the $45 million acquisition of Rogan’s Shoes, a 53-year-old work and family footwear company with 28 locations across Wisconsin, Minnesota, and Illinois. According to Shoe Carnival, the acquisition was funded with cash flow generated in fiscal 2023 and was expected to be immediately accretive to the company’s fiscal 2024 earnings. Shoe Carnival added that the buy advanced its strategy to be the nation’s leading family footwear retailer.
RG Barry Corporation, the parent company to Dearfoams, Baggallini, Columbus Product Group and Planet A, revealed in June that it had been acquired by the Marubeni Growth Capital U.S. (MGCU) a subsidiary of the Tokyo-based Marubeni Corporation. Under the deal, which closed on June 4, 2024, Blackstone exited its minority ownership position in RG Barry. Private equity firm Mill Road Capital maintained a minority equity stake and MGCU took on an undisclosed majority stake. According to RG Barry chief executive officer Bob Mullaney, the acquisition was meant to help fuel increased investments into RG Barry’s portfolio of existing brands.
Arklyz Group, owner of The Athlete’s Foot, Asphaltgold, Intersocks and other global licenses and distribution deals, in May closed a deal to acquire German shoe store manufacturer Lloyd Shoes from Ara AG, a family owned German shoe company. The terms of the deal, which was first announced in January, were not disclosed. Owner and chief executive officer of Arklyz Group Param Singh said in a statement at the time that the “goal is to transform Lloyd into a globally appealing lifestyle brand.”
Designer Brands Inc. announced in June that it acquired Canadian footwear retailer Rubino in the first quarter of fiscal year 2024. The DSW parent company said the deal, which includes 28 Rubino stores in the Quebec province of Canada, helps expands DBI‘s presence in the country. DBI chief financial officer Jared Poff said in a June call with investors that Rubino generated 47 million Canadian dollars in 2023. DBI expects Rubino to contribute similar operating income as the retailer’s entire Canadian segment.
After filing for Chapter 11 bankruptcy protection in April, Shoes For Crews underwent a sale of its assets to first lien secured lenders via a stalking horse credit bid, thus emerging from Chapter 11 bankruptcy and eliminating more than $300 million of debt. The slip resistant footwear company said in July that a group of top-tier global investment firms — who had previously invested in the company — will now own Shoes For Crews and its international entities. Shoes For Crews said it will not make any changes to its management team or employee base.
Schutz parent company Arezzo & Co said in February it would merge with fellow Brazilian fashion company Grupo Soma in a new deal that would see the union of two of the largest fashion companies in Latin America. As part of the deal, Arezzo and Grupo Soma will join together in a newly-formed company, with Arezzo owning a 54 percent controlling interest and Soma owning 46 percent. While specific terms of the deal were not disclosed, Arezzo noted that the new company would have yearly revenues of 12 billion reals ($2.42 billion) with a collective portfolio of 34 brands, including Arezzo, Farm Rio, Hering, Reserva, Animale, Schutz, NV, Anacapri, Alexandre Birman, Cris Barros, Carol Bassi and Oficina, among others.
HanesBrands Inc. sold Champion to Authentic Brands Group for $1.2 billion in June. The deal, which included the brand and some of its operating assets, extended Authentic’s reach in the growing active segment, where the company already owns Reebok. HanesBrands, which will use the money to pay down debt, started exploring its options for the ailing Champion brand in September.
