The Fashion and Beauty Deals That Defined 2025

From Versace changing hands to billion-dollar beauty megadeals and an AI boom reshaping everything from design to discovery, the investment and mergers and acquisitions (M&A) landscape found a steadier rhythm in 2025. The deals that closed made clear that only the strongest operators and the boldest ideas are attracting capital.

At the start of the year, experts predicted fashion and beauty dealmaking to roar back after a muted 2024. Instead, the year opened with hesitation. “Macroeconomic shifts — largely related to tariffs and consumer spending uncertainty — led to a lot of processes to pause or even fully stop,” says Marissa Lepor, managing director at M&A firm The Sage Group. But the slowdown created a sorting mechanism. “It was not only a test of brand, but a test of team. The businesses that were able to navigate headwinds swiftly were still able to get deals done. There’s very little interest in mediocre investment opportunities.” When money is flowing more liberally, investors are more likely to place a riskier bet — companies that are less profitable, but have high-growth potential.

The shakeout in 2025 means that those who were able to thrive under pressure this year are even more attractive. In 2026, experts predict an uptick in M&A activity, especially as tariff noise settles and the luxury market improves.

“The stronger the luxury market demand, the more there is interest from investors. As the market turns positive, you see more financial sponsors that are keen to back the sector,” says Mario Ortelli, founder and managing partner at M&A boutique advisory Ortelli & Co.

Here are the year’s takeaways from M&A across fashion, beauty, retail and tech.

Fashion

The most prominent luxury M&A deal this year was by far Prada Group’s acquisition of Versace, which closed on December 2. “It’s been exciting to see that a historical brand like Versace has found its home in the Prada Group. There are clear synergies on the platform, logistics, retail, marketing side, and it does not overlap with the current portfolio of Prada,” says Ortelli. “I expect that a team of people already identified by Prada will enter in the merchandising division, will reinforce the marketing, the style and the retail, and I believe that Prada has already put in line the key elements that they want to introduce to the new organization.”

Versace SS26.Photo: Courtesy of Versace