Skechers Acquired for $9 Billion Amid U.S. Tariff Turmoil/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Skechers will be acquired by 3G Capital for over $9 billion and taken private, as U.S. tariffs on imports—especially from China—cast uncertainty over the footwear industry. The deal reflects rising investor caution and strategic repositioning amid growing trade tensions.
Skechers $9B Buyout: Quick Looks
- Acquired for $9B: Skechers to be bought by 3G Capital and taken private.
- $63 Per Share: Offer includes 30% premium over 15-day stock average.
- Global Revenue Focus: Two-thirds of sales are international; 15% from China.
- Tariff Uncertainty Looms: Trump’s tariff hikes add pressure to offshore production.
- No Forward Guidance: Company declined to forecast amid volatile trade environment.
- Cost Pressures Mount: Executives cite 159% effective tariff rate on China-made goods.
- Production Reassessment: Company exploring sourcing shifts to lower-cost regions.
- Deal Unanimously Approved: Skechers board signs off on 3G Capital offer.
- Global Retail Footprint: 5,300 stores worldwide; 1,800 company-owned.
- 2024 Revenue Record: Company reported $9B in sales, $640M in earnings.
Skechers Acquired for $9 Billion Amid U.S. Tariff Turmoil
Deep Look
In a deal that underscores how dramatically global trade tensions are reshaping American businesses, footwear giant Skechers announced Monday it will be acquired for over $9 billion by private equity firm 3G Capital, marking a major shift as tariffs and geopolitical risk squeeze consumer brands with overseas manufacturing.
The Manhattan Beach, California-based company confirmed it will go private after accepting a $63-per-share offer, a 30% premium over its recent 15-day volume-weighted average. Shares jumped nearly 25% Monday, closing at $61.59.
The acquisition comes as the Trump administration’s aggressive trade policy—including sweeping tariffs on Chinese imports—creates volatility for companies like Skechers, which rely heavily on foreign production, particularly in Asia. Skechers generates approximately 15% of its revenue from China and nearly two-thirds from international markets overall, according to FactSet.
Though the press release announcing the acquisition didn’t mention tariffs, trade friction is clearly casting a long shadow over the move. Just weeks ago, Trump hiked tariffs on Chinese goods to 125%, intensifying the economic standoff after China raised its own import duties to 84%.
Skechers, like many other consumer product companies, has taken a cautious stance in response. During its first quarter earnings call, executives withheld forward-looking guidance, citing the unpredictable trade environment. Chief Financial Officer John Vandemore told investors the current climate was “too dynamic” to plan results with “reasonable assurance of success.”
More significantly, executives have acknowledged that the cost of producing goods in China for the U.S. market has become “prohibitively expensive.” With a current estimated effective tariff rate of 159% on China-origin footwear, the company is reportedly looking to shift supply chains and restructure vendor relationships.
“We’re looking at how we optimize the global cost of tariffs in all markets when we move production,” Vandemore said in April. He cited several “levers,” including cost-sharing with suppliers, price adjustments, and sourcing optimization to manage the escalating cost pressures.
A Broader Industry Shift
The Skechers deal arrives at a time of major flux for the U.S. footwear and apparel industry, which imports about 97% of its products, mostly from Asia, according to the American Apparel & Footwear Association. Rising tariffs have put pressure on margins for American brands and sparked a wave of reshoring discussions or supplier diversification efforts, particularly to Vietnam, Indonesia, and Latin America.
But moving production isn’t easy. It requires years of investment, regulatory navigation, and quality control measures, all while trying to meet consumer price expectations.
Still, investors have shown increasing concern about future profitability and exposure to Chinese manufacturing. Skechers’ decision to go private underlines a trend of companies seeking more flexibility and long-term strategic freedom without the burden of quarterly earnings scrutiny.
The deal was unanimously approved by Skechers’ board. After completion, the company will continue to be led by CEO Robert Greenberg and its current leadership team, with headquarters remaining in Manhattan Beach, where the company was founded more than 30 years ago.
Skechers reported record annual revenue of $9 billion in 2024, with net income of $640 million, highlighting its profitability even as the global landscape grows more uncertain.
The acquisition is expected to close in the third quarter of 2025, pending regulatory and shareholder approvals.
