AP Business Writer, Matt Ott
Shoe Company’s Skechers has been acquired by 3G Capital for over $9 billion for investment companies to personally recruit.
The deal comes amid growing uncertainty about how US President Donald Trump’s tariffs on foreign goods will affect companies that manufacture products overseas, particularly in China. Athletic shoemakers have invested heavily in production in Asia.
The $63 per share offer represents a 30% premium against Skechers’ 15-day volume-weighted average stock price. The agreement was unanimously approved by the Skechers board of directors.
Skechers shares jumped nearly 25% on Monday to $61.56.
In a press release announcing the transaction, companies did not mention the potential impact of Trump’s tariffs on future businesses. However, Skechers said about two-thirds of its revenues account for 15% of the company’s revenues from US non-China sales, according to data company Factset.
The deal comes at a time of volatility with Trump’s ongoing, ongoing, and ongoing, tariff announcements. Skechers did not issue guidance when it released first-quarter revenue in April, as many other companies have been increasingly enacted since Trump’s widespread tariff announcement. Chief Financial Officer John Vandemore told investors: “The current environment is simply too dynamic and we can plan outcomes with reasonable guarantees of success.”
Executives also said they aim to minimize products that go to the US from “high-cost locations” including the impact of tariffs. The company did not immediately offer a breakdown of foreign production, but many of their shoes are stamped with “Made in China” stamps.
Trump raised tariffs on Chinese imports to 125% in early April after China raised its US goods obligations to 84% in an escalating battle that threatened to disrupt trade between the two largest economies in the world.
Last month, Skechers executives said the company has several “levers” that can be pulled to deal with tariffs, including cost sharing with vendors, optimization and price adjustments.
“We are looking at ways to optimize the global cost of tariffs in all markets when we want to drive production,” Vandemore said last month. “Obviously, the effective tariff rate is around 159%, so products from China to the US are very expensive.”
Skechers has around 5,300 retailers worldwide and is owned by around 1,800 companies.
Approximately 97% of the clothing and shoes purchased in the US are imported primarily from Asia. Using overseas factories reduces labor costs for US companies, but neither they nor the overseas suppliers are likely to absorb the price rise due to the new tariffs.
Once the deal closes, the company will be led by Skehees Chairman and CEO Robert Greenberg and his management team. Its headquarters remained in Manhattan Beach, California and was established more than 30 years ago.
Skechers reported a record $9 billion in revenue in 2024, with net profit of $640 million.
The contract with 3G Capital is expected to close in the third quarter of this year.
Original issue: May 5, 2025 9:47am EDT
