Last Monday, it was announced that Skechers will be sold to the investment firm 3G Capital for $63 a share, a 30% premium over its stock price. As a result, Skechers’ stock surged by 25%, jumping from $49.84 to $61.72. The deal marks the end of Skechers’ 26-year run as a publicly traded company (Yahoo Finance).
The timing for this shift is notable. President Donald Trump’s proposed trade policies include a 145% tariff on Chinese imports and a 10% minimum tax on goods from all other countries (Reuters). These trade measures have triggered alarms across the footwear industry, which relies heavily on overseas production, especially in Asia. Two weeks ago, Skechers, along with Nike, Under Armour, and other footwear giants, signed a letter through the Footwear Distributors and Retailers of America (FDRA), urging the Trump administration to exempt shoes from the new tariffs.
The letter stressed that “hundreds of businesses face the prospect of closure” and that “tens of thousands of jobs are at stake if the tariffs take effect. It also called for a more structured approach to trade enforcement, arguing that targeting basic consumer goods like shoes would do more harm to American families than good. As the letter put it, a smarter policy would “advance critical national security imperatives without causing unnecessary pain to American families.”
In that context, Skechers’ decision to go private was aimed towards protecting itself from the financial whiplash of geopolitical shifts. Without the constant pressure to meet quarterly earnings targets, the company now has room to restructure supply chains, explore other sourcing options, and take business risks.
The new owner, 3G Capital, is well known for its bold management style. Its previous takeovers of Burger King, Tim Hortons, and Kraft were noted by deep cost-cutting and operational efficiency (The Wall Street Journal). Skechers’ 5,400 U.S. stores may soon face major changes under 3G’s ownership – though improvement in efficiency is likely, there are also concerns about layoffs, loss of company culture, and shifts in market share (Forbes).
Skechers’ consumer perception is currently being tested. Since its founding in 1992, Skechers has built a loyal customer base, appealing to a broad range of demographics and affordability. However, as ESG (Environmental, Social, and Governance) standards have become increasingly important, the move away from public transparency may raise questions. Time will tell as to how Skechers will handle labor rights as a result of rising costs, sourcing, and carbon emissions under new management.
Looking forward, Skechers’ exit may be the first of many. If tariffs and trade tensions continue to escalate, more companies may view private ownership as the viable option in an increasingly uncertain global economy.
