Skechers is set to go private in a historic $9.42 billion deal that marks the largest buyout in the footwear industry to date. The private-equity firm 3G Capital has announced that it will acquire Skechers for $63 per share, a significant premium of 28% over the stock's last closing price. This transaction is expected to close in the third quarter of 2025, allowing Skechers to exit public markets after 26 years.
The deal comes as Skechers faces a challenging economic environment, particularly due to the impact of steep U.S. tariffs. In a statement released on Monday, the company acknowledged that the ongoing uncertainty in global trade has made the public markets less appealing. Skechers recently withdrew its annual results forecast, warning of the fallout from President Donald Trump's 145% import tariff on Chinese goods, which account for a significant portion of the brand's U.S. business.
Skechers, founded in 1992, has grown to become the third-largest footwear brand globally, boasting over 5,000 retail stores across 180 countries. With a revenue of $9 billion in 2024, Skechers is positioned behind only Nike and Adidas in the competitive footwear market. The company has developed a reputation for producing comfortable and accessible footwear, appealing particularly to older consumers.
In recent years, Skechers has expanded into the sportswear sector, securing sponsorship deals with high-profile athletes such as NBA stars Joel Embiid and Julius Randle, as well as soccer sensation Harry Kane. This strategic move has allowed Skechers to tap into new consumer niches, particularly in running shoes.
The acquisition by 3G Capital, known for its aggressive cost-cutting strategies, has raised questions about the future direction of Skechers. Analysts suggest that the buyout could enable Skechers to navigate the current economic challenges more effectively, free from the pressures of public scrutiny. Robert Greenberg, the 85-year-old founder and CEO of Skechers, will continue to lead the company, alongside his son Michael and operating chief David Weinberg.
Despite the positive outlook for Skechers, the broader footwear industry is facing challenges. Competitors like Nike, Adidas, and Under Armour have seen their share prices decline, even as the S&P 500 index has risen over the past year. This volatile market backdrop has led to speculation about whether other sports-related retailers might follow Skechers' lead and consider going private.
Legal consultant Michael Rynowecer emphasized that Skechers has unique strengths that 3G Capital aims to leverage for future growth. "Their gross margins are better than a lot of other footwear brands, which suggests strong branding and good customer-facing operations. That’s not easy to replicate," he noted.
As the deal unfolds, it remains to be seen how Skechers will adapt to the changing retail landscape and whether it can sustain its growth trajectory amid ongoing economic uncertainties. The acquisition not only represents a significant financial move for Skechers but also highlights the shifting dynamics within the global retail industry.
