Skechers Sold For $9 Billion Amid Tariff Turmoil, To Go Private Under 3G Capital

Skechers, the globally recognised footwear brand, is set to go private in a deal valued at over $9 billion. Investment firm 3G Capital will acquire the company at $63 per share, offering a 30 per cent premium over Skechers’ 15-day volume-weighted average price. The transaction, unanimously approved by the Skechers board, sent shares soaring nearly 25 per cent on Monday, closing at $61.56.

The acquisition comes at a time of mounting economic uncertainty, driven in part by volatile US trade policy. President Donald Trump’s shifting stance on tariffs, particularly those targeting Chinese imports, has cast a shadow over companies like Skechers that rely heavily on overseas manufacturing. Though neither Skechers nor 3G Capital addressed the issue directly in their joint announcement, the impact of tariffs remains a key concern.

Skechers derives about two-thirds of its revenue from international markets, with China accounting for approximately 15 per cent, according to data from FactSet. The company's global footprint includes around 5,300 retail stores, of which 1,800 are company-owned. Like many other US apparel and footwear companies, Skechers has long depended on Asian production facilities to keep labor and manufacturing costs low. The American Apparel & Footwear Association estimates that 97 per cent of clothing and footwear sold in the US is imported, largely from Asia.

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Tariff Hike

Trump’s recent hike in tariffs on Chinese imports, raising them to 125 per cent, followed by retaliatory increases from Beijing, which lifted duties on US goods to 84 per cent. These steep tariffs significantly impact companies like Skechers, whose products frequently bear a "Made in China" label. Chief Financial Officer John Vandemore recently described the tariff environment as “too dynamic” for accurate financial forecasting. He stressed that Skechers is actively exploring ways to mitigate the impact, including diversifying its supply chain and adjusting pricing strategies.

Despite these headwinds, Skechers reported strong financial results in 2024, posting record revenue of $9 billion and net income of $640 million. The company plans to maintain its headquarters in Manhattan Beach, California, and will continue to be led by current Chairman and CEO Robert Greenberg and his management team.

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