In a trade-war whirlwind, shoemaker Skechers is sold for $9 billion to
become a private company
[May 06, 2025] By
MATT OTT
The shoe company Skechers is being acquired for more than $9 billion to
be taken private by the investment firm by 3G Capital.
The deal comes amid growing uncertainty over how U.S. President Donald
Trump's tariffs on foreign goods will affect companies who make their
products overseas, particularly in China. Athletic shoe makers have
invested heavily in production in Asia.
The offer of $63 per share represents a premium of 30% to Skechers’
15-day volume-weighted average stock price. The deal was unanimously
approved by Skechers' board.
Skechers shares jumped nearly 25% Monday, to $61.56.
In a press release announcing the deal, the companies did not mention
the potential impacts of Trump’s tariffs on its business going forward.
However, Skechers says that about two-thirds of its revenue comes from
sales outside of the U.S. China accounts for 15% of the company’s
revenue, according to the data firm FactSet.
The deal comes at a precarious time with Trump’s ongoing,
on-again-off-again tariff announcements. Like many other companies
increasingly have done since Trump’s widespread tariff announcements,
Skechers did not issue guidance when it released its first quarter
earnings in April. Chief Financial Officer John Vandemore told investors
that the “current environment is simply too dynamic from which to plan
results with a reasonable assurance of success.”
Executives also said they would be looking to minimize products going to
the U.S. from “high-cost locations,” including the impact of tariffs.
The company did not immediately provide a breakdown of foreign
production, but many of their shoes come with a “Made in China” stamp.
Trump raised the tariff on Chinese imports to 125% in early April, hours
after China boosted the duty on American goods to 84% in an escalating
battle that threatens to disrupt trade between the world’s two largest
economies.
[to top of second column] |
A Skechers sign is shown in San Francisco, March 17, 2024. (AP
Photo/Jeff Chiu, file)
 Skechers executives said last month
that the company had several “levers” it could pull to deal with
tariffs, including cost sharing with vendors, sourcing optimization,
and price adjustments.
“We’re looking at how we optimize the global cost of tariffs in all
markets when we look to move production around,” Vandemore said last
month. “Obviously, with an effective tariff rate at about 159%,
products from China to the U.S. are prohibitively expensive.”
Skechers has about 5,300 retail stores worldwide, about 1,800
company-owned.
About 97% of the clothes and shoes purchased in the U.S. are
imported, predominantly from Asia, according to the American Apparel
& Footwear Association. Using factories overseas has kept labor
costs down for U.S. companies, but neither they nor their overseas
suppliers are likely to absorb price increases due to new tariffs.
When the deal closes, the company will be led by Skechers Chairman
and CEO Robert Greenberg and his management team. Its headquarters
will remain in Manhattan Beach, California, where it was founded
more than three decades ago.
Skechers reported a record $9 billion in revenue in 2024 with net
earnings of $640 million.
The deal with 3G Capital is expected to close in the third quarter
this year.
All contents © copyright 2025 Associated Press. All rights reserved
 |
