Skechers to trade privately for $9.4 billion

Manhattan Beach Shoe Brand Skechers, which makes sports and walking shoes, is privately owned by a $9.4 billion contract.

3G Capital said on Monday that New York investment firm 3G Capital will acquire the company in a deal expected to end in the third quarter.

The company reported record quarterly sales of $2.41 billion last month, up more than 7% from last year. In 2024, Skechers' annual sales were US$8.97 billion and 27 million units sold. Net income for the quarter fell 2% to $202.4 million.

Before the deal was announced, Skechers had a market capitalization of approximately $7.4 billion.

The valuation is $9.4 billion, reflecting the price of $63 per share at Class A and Class B shares.

The company's shares rose nearly 25% on Monday, but so far, the company's shares have fallen 28% as of Friday's close.

“Skechers is an iconic, founder-led brand with a record of creativity and innovation. We admire the business that the team has built and look forward to supporting the company's next chapter,” 3G said in a statement.

After Skechers decided not to provide full-year earnings guidance for April, the sales announcement was “macroeconomic uncertainty arising from global trade policy.”

President Trump's aggressive tariffs have affected trade with major manufacturing hubs, including Vietnam and China, where Skychel made a large portion of the shoes. Trump imposed a 145% tax on goods imported from China.

Tariffs and subsequent trade wars raised prices for consumers and hit large and small retailers that rely on importers in Southern California and elsewhere. According to Bloomberg, Skechers is adjusting prices and working with suppliers to reduce costs.

The footwear company was founded in California in 1992 with its original design, including free sliding and arched support. The company first sold the boots to lumberjacks and has since expanded to provide a range of sneakers for adults and children.

The company has flagship retail stores in Manhattan Beach, as well as hundreds of locations nationwide, including several in Southern California.

Skechers is founded by current CEO Robert Greenberg, who will continue to lead the company after the acquisition. Greenberg prioritized comfortable styles, a strategy that helped his company thrive, while competitors such as Nike and Adidas faltered.

Analysts and company leadership attribute the brand’s success to strategies around continuous innovation and a variety of footwear products.

Skechers declined to comment on the deal.

Bloomberg contributed to the report.