Fri, Jun 17, 2022
Industry Insights: Apparel – Summer 2022
According to the most recent Consumer Price Index (CPI) report, prices rose 8.3% in April compared to the year prior, remaining near the 40-year highs seen in March.1 Elevated levels of inflation have been driven by supply chain disruptions and pent-up consumer demand for goods following the reopening of the economy in 2021.
For global apparel brands, raising prices has become an integral part of the business model. Unfortunately, most brands won’t have a choice when it comes to raising prices this year. The cost of many raw materials has soared during the pandemic, including the cost of cotton, which hit record highs last year. Shipping costs are also sky-high, and a lack of warehouse space is driving up inventory expenses. As a result, apparel and footwear prices for the month of April rose 5.4% from a year ago, just slightly trailing the 6.2% jump seen in the Labor Department’s reading of “core” inflation, or prices on all goods outside of the volatile food and energy sectors.1
Our apparel report aims to identify trends and provide insights across the apparel sector, focusing on key themes, issues and opportunities. We address two key topics that have direct implications for the apparel and retail sectors: inflation and supply chain disruption. We hope you continue to find this report and its future editions to be a useful source of information.
1 Consumer Price Index. Bureau of Labor Statistics. May 11, 2022
Consumer Investment Banking
Consumer, Retail, Food and Restaurant expertise for middle-market M&A transactions. In 2018, Duff & Phelps acquired Kroll and unified under the Kroll brand in 2020.
Distressed M&A and Special Situations
Kroll professionals have advised hundreds of companies, investors and other stakeholders at all stages of distressed transactions and special situations.
Transaction Advisory Services
Kroll’s Transaction Advisory Services platform offers corporate and financial investors with deep accounting and technical expertise, commercial knowledge, industry insight and seamless analytical services throughout the deal continuum. Duff & Phelps acquired Kroll in 2018 and unified under the Kroll brand in 2020.
Fairness and Solvency Opinions
Duff & Phelps Opinions is a global leader in Fairness Opinions and Special Committee Advisory, ranking #1 for total number of U.S. and global fairness opinions over the past 10 years, according to Refinitiv cumulative data from 2013-2022.
Private Capital Markets – Debt Advisory
Kroll has extensive experience raising capital for middle-market companies to support a wide range of transactions. Duff & Phelps acquired Kroll in 2018 and unified under the Kroll brand in 2020.
Comprehensive Due Diligence Solution
Our Comprehensive Due Diligence solution helps clients minimize risks and make the most informed business decisions. We support in the areas of tax, compliance and regulatory, ESG, operations/strategy, M&A, financial and accounting, investigations, disputes and cyber/IT risk.