What Happened?

Shares of footwear company Skechers (NYSE:SKX) jumped 26.2% in the pre-market session after the company announced it has agreed to be acquired by 3G Capital. 3G Capital will pay $63 per share in cash for all outstanding shares of Skechers, representing a premium of 30% to Skechers' 15-day volume-weighted average stock price. This significant premium likely signals 3G Capital's confidence in Skechers' brand strength and potential and should offer some current shareholders an immediate and attractive return on their investment.

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What The Market Is Telling Us

Skechers’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. But moves this big are rare even for Skechers and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was about a month ago when the stock dropped 21.3% on the news that President Trump announced "reciprocal tariffs" on all US imports, set at a minimum rate of 10% or more. From clothing brands and electronics makers to the e-commerce sites that move their goods, companies built on global supply chains took the biggest hit. Stocks with heavy exposure to Asia were especially hard-hit, as the new tariffs threatened the growth and profits of firms with factories in the region. Vietnam, central to many companies' production plans, faced a 46% tariff. Cambodia and Indonesia were also in the crosshairs, with tariff rates of 49% and 32%. These measures could significantly erode the competitiveness of goods produced in those regions. For example, reduced production volumes would negatively affect the sales growth of all companies benefiting from these manufacturing hubs.

Skechers is down 8.6% since the beginning of the year, and at $61.50 per share, it is trading 21.4% below its 52-week high of $78.24 from January 2025. Investors who bought $1,000 worth of Skechers’s shares 5 years ago would now be looking at an investment worth $2,299.

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