The news: Skechers will be taken private by investment firm 3G Capital in a $9.4 billion deal that both parties believe will drive long-term global growth. The acquisition is expected to be finalized in Q3.

Stepping out of the spotlight: Going private will enable Skechers, the third-largest footwear company in the world, to avoid public scrutiny during a particularly challenging time for the industry. Despite posting record Q1 sales, the firm pulled its 2025 guidance due to macroeconomic uncertainty resulting from tariffs.

• While Skechers declined to say how much it relies on hubs like China and Vietnam for manufacturing, the company did note that it depends on the former for products like children’s shoes that are cost-prohibitive to produce elsewhere.
• It does have the capacity to shift production to places subject to lower tariffs, and is actively pursuing ways to offset those duties by raising prices or sharing the costs with vendors.
• But as CFO John Vandermore made clear, the “lack of visibility” around tariff policy is one of the biggest challenges the company faces.

The big picture: Skechers’ concerns are hardly isolated. The company was one of 76 signatories, including Nike and adidas, to a letter asking President Donald Trump for an exemption for the footwear category.

• The missive noted that reciprocal levies stacked on top of already substantial footwear tariffs mean American companies must now pay duties ranging from 150% to nearly 220%.
• Those tariffs place too heavy a burden on most businesses and will result in price increases that reduce the availability of affordable footwear—disproportionately affecting lower- and middle-income families.
• The letter also rebutted the White House’s assertion that tariffs would bring manufacturing back to the US, noting that existing duties have done nothing to stem the decline of domestic production.

Our take: Skechers is more resilient than many of its peers because it relies on international markets for two-thirds of its business. But the company is vulnerable to declining US consumer sentiment and China’s struggling economy—neither of which will be helped by a trade war.

Go further: Read our report on the Impact of Tariffs on US Businesses, and stay up to date with the latest tariff developments with our Live FAQ: The Impact of Trump’s Tariffs on Consumers, Businesses, and Trade.

Editor's note: This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.