Skechers, one of the top players in the US footwear market, is making waves with a striking $9.4 billion sale deal. The private equity firm 3G Capital is set to acquire the company at $63 per outstanding share, transforming Skechers into a privately held entity. This move comes amid growing challenges from hefty tariffs imposed under Trump’s trade policies. 🚀
The news follows a collective warning from major US shoe brands—including industry giants like Nike and Adidas—that these tariffs could disrupt the entire industry. Critics point out that the new measures, with tariffs on children’s shoes soaring from over 150 percent to nearly 220 percent, are stripping the business certainty the industry needs, potentially leading to higher prices and job losses.
Beyond domestic success, Skechers boasts a vast global presence with around 5,300 retail stores (1,800 company-owned) and about two-thirds of its revenue generated outside the United States. This strategic shift to private ownership might help the company navigate the uncertainties of today's volatile trade environment—much like tech firms that continuously adapt to fast-changing global trends.
With record revenues of $9 billion in 2024 and net earnings of $640 million, Skechers remains a key player in a competitive market. For young professionals and tech-savvy readers in South and Southeast Asia, this story is a vivid example of how global policies can directly impact industries and everyday products. Keep an eye out as this exciting chapter unfolds! 👀
Reference(s):
US footwear giant Skechers to be sold under shadow of Trump's tariffs
cgtn.com
