Skechers, the popular footwear brand, is being acquired by investment firm 3G Capital in a deal worth over $9 billion, taking the company private. The acquisition, offering $63 per share—a 30% premium on Skechers’ recent average price—was unanimously approved by its board. Shares surged 25% following the announcement.
This move comes amid rising trade tensions between the U.S. and China, driven by President Trump’s escalating tariffs on foreign goods. Skechers, which generates about two-thirds of its revenue internationally—15% from China—has long relied on Asian manufacturing, particularly China. Tariffs as high as 125% on Chinese imports are raising production costs significantly, prompting companies like Skechers to reconsider sourcing strategies.
Although the press release didn’t reference the tariffs directly, executives previously admitted the uncertain trade environment has made financial forecasting difficult. CFO John Vandemore highlighted plans to mitigate costs via vendor cost-sharing, sourcing shifts, and price tweaks.
Skechers operates over 5,300 retail locations globally, with about 1,800 company-owned. Once the deal closes, Chairman and CEO Robert Greenberg and the current leadership will remain in charge, and headquarters will stay in Manhattan Beach, California. In 2024, Skechers recorded $9 billion in revenue and $640 million in profit. The acquisition is expected to finalize in Q3 2025.