Skechers to Go Private in $9.4 Billion Sale to 3G Capital

Skechers just sprinted into a $9.4 billion private equity deal with 3G Capital, and this isn’t just about sneakers. It’s about strategy, supply chains, and a bold new chapter. The third-largest footwear brand globally is shifting gears—from public to private, from uncertainty to opportunity. The move comes amid major economic crosswinds, not the least of which are tariffs that had executives warning of an "existential threat" to business. But with CEO Robert Greenberg staying in the driver’s seat and 3G backing the engine, the future's looking spicy.

A Throwback Fit

Founded in 1992 by Robert Greenberg, Skechers went from selling rugged boots to becoming a household name in affordable, comfort-first footwear. The company successfully expanded into athletic and performance categories, with athletes like Joel Embiid and Harry Kane rocking its gear. Over the decades, Skechers evolved into a global powerhouse, raking in $2.41 billion in Q1 2025 revenue and building a footprint that spans more than 170 countries. But there’s one Achilles' heel: manufacturing dependence on China and Vietnam.

Source: finance.yahoo.com

Tariffs Threw a Wrench in the Laces

Just weeks before the acquisition news, Skechers joined Nike, Adidas, and dozens of other brands in a formal plea to President Trump. Their warning? Tariffs could devastate industry. With roughly 70% of its U.S. inventory coming from China and Vietnam, facing duties of up to 159%, Skechers withdrew its 2025 financial guidance, citing "macroeconomic uncertainty." CFO John Vandemore even compared the impact to the pandemic, signaling how serious the situation was. UBS analyst Jay Sole estimated that if Skechers took no mitigation action, its cost of goods could spike by roughly 24% due to the tariffs. Neil Saunders of GlobalData noted a $10 pair of shoes made in China could end up costing $25.90 before hitting U.S. shelves. That’s not a hiccup—it’s a crisis.

Still, 3G Capital maintained that its interest in Skechers was longstanding and not driven by the current trade drama. A source close to the deal told CNBC that 3G had eyed Skechers for years. The timing, however, amplified its relevance. Skechers' stock jumped 25% on the day of the announcement, a sign that investors see more than just a short-term lifeline.

This Ain’t 3G’s First Rodeo

The private equity juggernaut known for zero-based budgeting and long-term plays has a track record that includes Burger King, Heinz, and Hunter Douglas. This time around, they’re not chasing a brand in decline. Skechers is profitable, scalable, and primed for supply chain reinvention. Unlike flashier deals aimed at stripping assets, this is about refining operations and future-proofing a brand under pressure. Two deal options were reportedly on the table: a $63/share all-cash buyout or a $57/share payout with minority equity in the new private parent company. Either way, it signals flexibility and long-term vision, rare in take-private transactions.

Fresh Kicks, Fresh Start

With Greenberg still at the helm, Skechers isn’t changing faces, just shifting lanes. As a private company, it escapes the grind of quarterly Wall Street expectations. That means more room for bold investments: reshoring manufacturing, expanding e-commerce, or doubling down on emerging markets. Expect a swift push toward "China+1" sourcing: Vietnam, Indonesia, India, and potentially Mexico. These markets offer trade incentives, cheaper labor, and tariff-free advantages that could help future-proof Skechers' cost base.

3G isn’t likely to slash and burn. Instead, look for them to optimize sourcing, explore new factory locations in Southeast Asia, and maybe even ramp up U.S. production to sidestep future trade turbulence. As Vandemore noted, China still plays a unique role in kids’ footwear due to regulatory compliance and price points, but diversification is clearly on the roadmap. Vandemore also emphasized that they haven't seen signs of anti-American sentiment or brand backlash abroad, a key concern for global retailers operating under geopolitical scrutiny.

The Bigger Picture

Skechers’ sale is part of a larger retail reckoning. The footwear industry is rethinking its overreliance on China, and this move might nudge other brands to consider strategic pivots, supply chain overhauls, or even private equity lifelines. With 97% of U.S. clothing and shoes imported, Trump’s tariffs are turning up the heat across the board.

Meanwhile, Skechers’ competitors have also taken hits. Nike is down 22% YTD, Deckers is down 45%, and Crocs is off by 9%. The S&P 500 overall? Down nearly 7%. Skechers' move might look more like a step ahead than a retreat in this environment. As FDRA CEO Matt Priest put it, "Tariffs aren’t a temporary storm, they’re climate change for global business." Skechers' playbook, partner with deep-pocketed PE, go private, diversify sourcing, keep leadership intact, could become the new normal for consumer-facing giants navigating global volatility.

Walk This Way

Expect Skechers to:

• Explore new manufacturing hubs in Asia and the Americas
• Lean into digital and direct-to-consumer channels
• Leverage 3G's operational discipline for leaner, smarter growth
• Stay agile in a world where tariffs and trade wars are the new norm

Greenberg's continued leadership adds a layer of stability and vision that few founder-led brands enjoy post-acquisition. With 3G's capital and muscle behind it, Skechers could evolve into a leaner, more resilient global player who walks the tightrope between value and agility like a pro.

The Bottom Line

This isn't the end of Skechers' story. It’s a mid-season plot twist, one that reflects the broader shifts in how brands weather global disruptions. By going private, Skechers is buying itself the time and capital to rethink, restructure, and relaunch. And with a PE partner like 3G Capital, it's not limping into the future, it's stepping up its game. Want more breakdowns like this? Join 250,000+ readers getting MYCPE Insights, fast, sharp, and always ahead of the curve. Subscribe now.