Skechers U S A, Inc (SKX): Why Shares Soared 24% After Buyout News

Today, investors across the market are buzzing about the dramatic 24.35% surge in Skechers U S A, Inc (SKX) shares. This remarkable move is the direct result of a headline-grabbing acquisition agreement that has sent shockwaves through the footwear and retail investment landscape. Let’s break down what happened, why it matters, and what the future could hold for those holding shares of this iconic footwear giant.

Skechers U S A, Inc (SKX): The Buyout That Changed Everything

On May 5, 2025, Skechers U S A, Inc (SKX) announced it had entered into a definitive agreement to be acquired by global investment powerhouse 3G Capital. Under the terms of the deal, shareholders will receive $63.00 per share in cash, representing a substantial 30% premium over Skechers’ recent trading average. This all-cash offer, or a blended option of cash and equity units in the post-transaction entity, values the deal at a staggering $9.54 billion.

The news sent SKX shares soaring, with the stock closing at $61.39, up 24.35% in a single session. The premium offered by 3G Capital is a clear signal of confidence in Skechers’ brand, business model, and growth prospects. For investors, this is more than just a buyout—it’s a validation of Skechers’ position as a global leader in the footwear industry.

Deal Details: What Investors Need to Know

The acquisition agreement is structured to provide flexibility for shareholders. Investors can choose between the full-cash offer of $63.00 per share or a mixed package consisting of $57.00 per share plus a non-tradable equity unit in the new private company. However, the mixed consideration is capped at 20% of total shares, with any excess selections adjusted proportionally. Those who do not make a selection will automatically receive the all-cash offer.

One of the most significant aspects of this deal is the overwhelming support from Skechers’ existing stakeholders. The transaction has already secured consent from holders of approximately 60% of Skechers’ voting power. As a result, no further shareholder vote is required, streamlining the path to closing. The board of directors, guided by an independent committee, unanimously approved the agreement, further underscoring the deal’s credibility and strategic rationale.

The buyout will be financed through a combination of 3G Capital’s own funds and debt underwritten by JPMorgan Chase Bank. Upon completion, Skechers will be delisted from the New York Stock Exchange, marking the end of its run as a public company and the beginning of a new chapter under private ownership.

Leadership Continuity and Strategic Vision

Continuity in leadership is a cornerstone of the acquisition plan. Robert Greenberg will remain as chairman and CEO, with Michael Greenberg as president and David Weinberg as COO. This stability at the top is designed to ensure that Skechers’ strategic direction remains intact, even as it transitions to private ownership. The company’s headquarters will stay in Manhattan Beach, California, preserving its roots and culture.

3G Capital and Skechers’ management have articulated a shared vision for long-term growth. By taking the company private, they aim to accelerate strategic initiatives, invest in innovation, and expand Skechers’ global footprint without the short-term pressures of quarterly earnings reports. For investors, this signals a belief in the enduring value and potential of the Skechers brand.

Financial Performance: A Track Record of Growth

The timing of this acquisition is notable given Skechers’ recent financial performance. In fiscal year 2024, the company reported a 12.1% increase in revenue, reaching $8.97 billion. Wholesale sales grew by 13.2%, while direct-to-consumer sales rose by 10.7%. These figures highlight Skechers’ ability to capture market share and drive growth across multiple channels, even in a challenging retail environment.

This robust performance likely contributed to 3G Capital’s willingness to pay a significant premium. It also provides reassurance to shareholders that the company is being acquired from a position of strength, not weakness. The deal’s structure allows investors to realize immediate value while also offering a path to participate in the company’s future success through equity units in the new private entity.

Industry Context: Tariffs, Competition, and Resilience

The footwear industry has faced considerable headwinds in recent years, including supply chain disruptions, shifting consumer preferences, and the threat of tariffs on imported goods. In April 2025, leading footwear companies, including Skechers, Nike, and Adidas, appealed to policymakers for relief from tariffs, warning of an “existential threat” to the industry. Despite these challenges, Skechers managed to deliver record sales and maintain its competitive edge.

While some competitors have struggled with declining margins and volatile demand, Skechers’ diversified business model and global reach have enabled it to weather the storm. The company’s focus on both wholesale and direct-to-consumer channels has provided resilience, while its commitment to innovation and brand development continues to resonate with consumers worldwide.

What This Means for Shareholders

For current shareholders, the acquisition by 3G Capital represents a compelling opportunity to lock in gains at a premium valuation. The $63.00 per share cash offer is well above recent trading levels, providing immediate liquidity and a strong return on investment. For those interested in the company’s long-term prospects, the mixed consideration option offers a chance to remain invested in Skechers’ future as it embarks on its next phase of growth under private ownership.

The fact that the deal has already secured the support of major stakeholders and board approval reduces execution risk. The transaction is expected to close in the third quarter of 2025, pending regulatory review and customary closing conditions. Once completed, Skechers shares will no longer be available for public trading, so investors should carefully consider their options before the window closes.

Looking Ahead: The Future of Skechers U S A, Inc (SKX)

As Skechers prepares to go private, the company is poised to benefit from the strategic and financial resources of 3G Capital. The private equity firm has a track record of driving operational improvements and long-term value creation in its portfolio companies. With a stable leadership team and a clear growth strategy, Skechers is well-positioned to continue expanding its global presence and enhancing its product offerings.

For the broader footwear industry, this deal underscores the enduring appeal of strong brands with proven business models. It also highlights the willingness of private equity to invest in consumer companies that demonstrate resilience and growth potential, even in uncertain market conditions.

In summary, the 24.35% surge in SKX shares is a direct response to the announcement of a transformative buyout by 3G Capital. The deal offers shareholders an attractive premium, leadership continuity, and a path to participate in the company’s ongoing success. As the transaction moves toward completion, investors can look back on this moment as a turning point for Skechers U S A, Inc—a testament to the power of strategic vision, operational excellence, and the enduring value of a trusted brand.