Skechers Sells Out at a Discount—3G Capital Buys the Panic

Skechers is undervalued, and 3G Capital knows it.

In a surprise move, Skechers has agreed to go private in a $9.42 billion buyout led by 3G Capital. The deal, valued at $63 a share, represents a 28% premium to the stock’s pre-announcement close, but that’s after Skechers has already fallen 30% this year. Take away the tariff-induced downturn, and the so-called premium shrinks quickly.

Skechers Is Still Posting Solid Results

It was an opportunistic takeover. Skechers was still posting solid results — first-quarter earnings were strong — but Wall Street didn’t care. Investors punished the stock after Trump imposed a 145% tariff on Chinese imports, sending Skechers into defensive mode. In April, the company withdrew its full-year guidance.

The silence spooked the market. But the fundamentals weren’t bad, but confidence was shaken.

3G, known for squeezing margins and playing the long game, saw a window. A good brand. A global presence. Strong earnings. Short-term noise. Perfect conditions for a private equity strategy.

Skechers Didn't Look For Other Options

Skechers didn't look for other options - no competitive bidding. Just a two-way deal with 3G. That alone suggests the price wasn't fully vetted and shareholders may have been shortchanged.

The Greenberg family, who founded and still run Skechers, are staying on board. That makes for a smooth transition, but it also reinforces the idea that this deal was pre-planned. Personal connections trump market competition.

Tariffs Affected Sentiment But Not Business

Skechers is exposed to China, that’s why the Trump tariffs hit so hard. But external shocks don't necessarily show internal decay.

The brand is still expanding globally, has 5,000 stores in over 120 countries, and thrives in the value space with most shoes priced under $150. It also leans heavily on cultural relevance—celebrity tie-ins with Britney Spears, Kim Kardashian, Harry Kane—to stay visible in a cluttered market.

The media framed this as a company “in trouble.” But that ignores the core truth: Skechers is a recession-resilient business, caught in a policy storm. It’s not failing—it just didn’t want to keep explaining the chaos to public investors.

Who Actually Wins

This deal wasn’t made to reward public shareholders—it was built to benefit 3G and the Greenbergs.

What Comes Next

3G will probably cut costs, boost margins, clean house quietly, and then reintroduce the company in a cleaner form—either through a fresh IPO or a high-multiple sale. The tariff storm won’t last forever. Once the dust settles or Skechers diversifies production away from China, the valuation will look wildly different.

They’re buying low and planning to sell high. The public markets just won’t be invited next time.

Bottom Line

Skechers wasn’t saved—it was seized.

This is a strong company that got caught in macro headwinds and was undervalued because of it. Rather than fight for better pricing or explain short-term turbulence to Wall Street every quarter, management took the backdoor out—with 3G Capital holding it open.

Keep an Eye on the Peers

Skechers might just be the first one. With U.S.–China trade tensions escalating and import tariffs rising, other footwear and apparel brands heavily reliant on Chinese manufacturing—like Nike, Crocs, Columbia Sportswear, and even Under Armour—could face similar pressure. Valuations may dip not because of weak fundamentals, but because of macro fear.

Nike for example has a heavy reliance on Asia for manufacturing and already lobbying against tariffs. Highly sensitive to China sentiment.

You should scan for companies in similar positions where volatility could create temporary discounts, and where opportunistic buyers—or activist investors—might soon circle