By Nina Atimah
- Skechers is set to transition to a private entity, offering its shareholders a 30% premium on their stock
- Investment firm 3G capital plans to cough $9B for the acquisition
After nearly 30 years of being publicly traded, Skechers (SKX +0.07) is going steady. Skechers is set to transition to a private entity, offering its shareholders a 30% premium on their stock. Great news for the shareholders, however this move is worth reflecting on a little bit longer. This decision to go private comes in light of ongoing U.S.-China trade tensions that have disrupted supply chains and impacted profitability for many global retailers, including Skechers.
Why This Matters: Despite achieving record annual sales of $8.97 billion in 2024, the company experienced a significant 15.9% drop in sales in China in early 2025, highlighting the broader effects of tariffs and geopolitical issues on its operations in the Asia Pacific region. The footwear sector, which heavily relies on manufacturing in China and Vietnam, has been particularly affected by the tariffs, leading to increased costs and uncertainty. As a result, companies are exploring more flexible business models that are less exposed to public scrutiny.
Privatization allows firms like Skechers to concentrate on long-term strategies without the pressures of quarterly earnings reports and market fluctuations. It also enables them to navigate supply chain challenges and invest in innovation and growth more effectively. This trend is not unique; other companies in sensitive sectors are either postponing IPOs or choosing to go private, as evidenced by Klarna’s decision to halt its IPO plans. Analysts forecast that the number of IPOs in 2025 will drop to approximately 150, marking a fourth consecutive year of decline, which reflects the cautious stance businesses are adopting in the face of economic and geopolitical uncertainties.
What’s Next: In the coming months, keep an eye out for other footwear brands, like Nike and Adidas who have warned that tariffs could lead to job losses and price hikes, directly impacting consumers’ wallets.
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