Skechers is stepping away from the public stock market and going private in the midst of an intensifying trade war.
On Monday, the footwear company announced that global investment firm 3G Capital will acquire Skechers in a deal valued at $9.4 billion. The firm is offering $63 per share, representing a 30% premium over the company’s recent stock price.
“With a strong history behind us, Skechers is ready for its next phase in collaboration with 3G Capital,” said CEO Robert Greenberg. Following the announcement, Skechers’ stock surged 25%.
Headquartered in Southern California and operating 5,300 stores across the U.S., Skechers is currently the third-largest footwear brand globally. The industry has been hit hard by tariffs tied to the ongoing trade conflict, including a 145% duty on Chinese imports and a 10% baseline tariff on goods from other nations.
According to the Footwear Distributors and Retailers of America, nearly all shoes sold in the U.S.—99%—are produced overseas. Skechers is no exception, with its entire U.S. inventory sourced abroad. Analysts estimate that around 40% of the company’s products come from China, particularly its children’s line.
Due to uncertainty surrounding these trade policies, Skechers recently retracted its financial outlook. Prior to Monday’s announcement, the company’s shares had already dropped 26% this year amid fears over how tariffs would impact its bottom line. That decline made Skechers an appealing acquisition for 3G Capital, noted Neil Saunders of GlobalData Retail.
“While the brand is dealing with short-term challenges — as are all athletic footwear makers — its long-term growth prospects still look solid,” he explained.
Skechers joined forces with other major shoe brands like Nike and Under Armour last week in appealing to the U.S. government for tariff relief. In a letter, they warned that the import taxes could devastate the industry — potentially shutting down hundreds of businesses, eliminating tens of thousands of jobs, and pushing up costs for consumers.
The letter stressed the urgency of the situation: “American footwear businesses and families are facing an existential crisis due to these significant cost hikes. This demands immediate attention and action.”
