Skechers goes private amid rising tariffs
As U.S. tariffs on Chinese imports climb to 125%, Skechers is stepping away from public markets to rethink its strategy.
Pictured: a Skechers store in Los Angeles, California — a reminder that the future of its retail footprint may depend on how the company adapts to shifting global trade and production costs. (Photo by Venti Views)
Sketchers, the California-based footwear company known for comfortable lifestyle and sports shoes, is going private in a $9.42 billion deal with 3G Capital. The move comes as rising U.S. tariffs on Chinese imports sharply increase costs for shoes, a major portion of Skechers’ production.
The company has not disclosed exactly how much of its shipments are affected, but given its reliance on Asian manufacturing, it is likely significant. These pressures contributed to Skechers withdrawing its 2025 financial forecast, a public prediction of expected revenue and profits.
Analysts suggest the decision to go private may allow Skechers to manage rising costs, restructure operations, and make long-term strategic moves without the scrutiny of quarterly earnings reports.
To cope with the tariffs, Skechers is exploring supply chain adjustments, cost-sharing with vendors, and price changes. While the company has not confirmed all reasons, the combination of increased import costs, global trade uncertainty, and the pressure of public reporting likely pushed Skechers toward going private. This situation highlights how sudden government trade policies can shape corporate strategy, especially for companies with extensive international supply chains.
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