The popular footwear brand Skechers is set to be acquired for over $9 billion by the investment firm 3G Capital, with plans to take the company private. This transaction unfolds amid increasing uncertainty regarding potential impacts of President Donald Trump’s tariffs on foreign goods, particularly affecting companies with overseas production in regions like China, where athletic shoe manufacturers have heavily invested.
The acquisition offer stands at $63 per share, which is a 30% premium over the 15-day volume-weighted average stock price of Skechers. The company’s board has unanimously approved the transaction. Following the announcement, Skechers’ stock saw a nearly 25% increase, reaching $61.56.
While the announcement from the companies did not specifically address the implications of the ongoing tariff situation, Skechers generates about two-thirds of its revenue from international sales. Data indicates that China contributes approximately 15% to the company’s total revenue.
The deal emerges amidst a fluctuating landscape of tariff policies under President Trump. In a previous earnings release, Skechers chose not to provide guidance, citing the volatile tariff environment. The company’s Chief Financial Officer, John Vandemore, expressed challenges in planning future results with certainty due to these conditions. He also mentioned efforts to reduce exposure to products from high-cost locations and the impact of tariffs.
Currently, a significant portion of Skechers’ manufacturing occurs in China, highlighted by the “Made in China” label on many of their products. The tariff on Chinese imports was raised to 125% by the Trump administration in early April, shortly after China increased duties on American goods to 84%. This escalation has the potential to disrupt trade between the two largest global economies.
Skechers executives have identified several strategies to mitigate the effects of tariffs, such as cost-sharing with vendors, optimizing sourcing, and adjusting prices. Vandemore noted the prohibitive nature of tariffs with effective rates around 159%, making imports from China to the U.S. exceedingly costly.
Globally, Skechers operates approximately 5,300 retail outlets, with around 1,800 being company-owned. The American Apparel & Footwear Association reports that 97% of clothing and footwear purchased in the U.S. are imported, mainly from Asia. The practice of utilizing overseas production has historically helped U.S. companies manage labor costs, although neither these companies nor their foreign suppliers are likely to absorb the increased costs resulting from new tariffs.
Upon completion of the deal, Skechers will continue to be led by Chairman and CEO Robert Greenberg, alongside his management team. The company’s headquarters will remain in Manhattan Beach, California, where it was established more than 30 years ago.
In 2024, Skechers reported a record revenue of $9 billion, with net earnings amounting to $640 million. The acquisition by 3G Capital is anticipated to be finalized in the third quarter of this year.
