Skechers, the third-largest footwear company in the United States, announced it will be sold in a $9.4 billion deal to private equity firm 3G Capital.
The sale comes amid mounting pressures from US tariffs on imported goods, which industry leaders warn could devastate the American footwear market.
On Monday, Skechers and 3G Capital released a joint statement revealing that 3G Capital will acquire Skechers for $63 per share, expecting to finalize the deal later this year. Once the transaction is complete, Skechers will become a privately held company, with CEO Robert Greenberg continuing to lead the brand.
Although neither company explicitly mentioned it, analysts believe the sale is closely tied to the impact of President Donald Trump’s trade policies. Nearly all of Skechers’ products are manufactured in Asia, and about two-thirds of its revenue comes from international sales.
In late April, Skechers joined major footwear brands like Nike and Adidas in expressing concern over the administration’s tariff policies. The Footwear Distributors and Retailers of America, along with over 80 leading US shoe companies, sent a letter to President Trump urging him to reconsider the tariffs, which they described as an “existential threat” to the industry.
“We are hit particularly hard by the tariff actions, because the US government already places a significant tariff burden on our industry before any new tariffs are added,” the letter stated. The companies highlighted that tariffs on children’s shoes could exceed 150%, significantly increasing costs for consumers.
The footwear giants warned that the tariffs would not bring manufacturing back to the United States but instead create uncertainty that hinders investment in domestic production capabilities. They expressed deep concern over potential job losses and reduced consumer spending, which could harm the entire US economy.
Despite reporting a record $9 billion in revenue last year, Skechers has faced recent financial challenges. The company’s stock price has dropped in recent months due to tariff concerns, and its first-quarter results fell short of Wall Street expectations. In response to “macroeconomic uncertainty stemming from global trade policies,” Skechers withdrew its full-year outlook.
Skechers’ CFO John Vandemore compared the current economic environment to the challenges faced during the pandemic, indicating that the company is adapting by sharing costs with suppliers and adjusting prices.
The sale of Skechers to 3G Capital reflects the broader struggles of the US footwear industry amid ongoing trade tensions. As companies navigate these challenges, the future of the industry remains uncertain.
