Tariffs Played a Role in Skechers Surprise Buyout -- Market Talk

Dow Jones
May 06, 2025

09:26 ET--Skechers's planned $9.4 billion sale to 3G Capital, which will make Skechers private, came as a surprise to many because the company is neither broken nor an emerging growth brand, analysts say. The acquisition signals confidence that tariff-related headwinds are not insurmountable, says Raymond James analyst Rick Patel. Deutsche analyst Krisztina Katai believes the buyout could precipitate other deals and improve valuation for the footwear industry, despite stock pressure due to high tariff exposure. To Williams Trading analyst Sam Poser, going private is a simple solution for Skechers's aging CEO Robert Greenberg. "All the noise around tariffs, the macro outlook, and having to continue to navigate the public markets was more than enough to sell the company," Poser says. (katherine.hamilton@wsj.com)

 

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Skechers Chief Executive and founder Robert Greenberg could have been the key driver behind the footwear company's private-equity acquisition, Williams Trading analyst Sam Poser says. Greenberg, 84, controls about 60% of Skechers's voting shares, Poser says. He is set to stay at the helm through the transaction, but Poser believes he's likely to retire next year. A strategic acquisition would have been more complicated than the deal to go private, in part due to Greenberg's integral role, Poser says. Greenberg likely wouldn't be willing to report to another operator in a strategic acquisition scenario, Poser argues, and since he is the visionary behind the brand, his departure would likely reduce the company's sale value. (katherine.hamilton@wsj.com)

 

(END) Dow Jones Newswires

May 06, 2025 09:32 ET (13:32 GMT)

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