‘A consistent market-share taker’: How Skechers became a coveted acquisition target even amid a global trade war

The news surprised footwear analysts, some of whom pointed out that Skechers has been under family control for the last 30 years. “I’ve never heard any chatter or speculation about the company potentially selling itself,” Tom Nikic, a senior analyst for Needham & Company, told Modern Retail.

What’s more, Skechers is unexpectedly going private in the middle of a trade war that’s hit the footwear industry hard. Skechers reportedly makes some 40% of its shoes in China, where U.S. import tariffs stand at 145%. At the end of April, Skechers withdrew its guidance for the year, citing “macroeconomic uncertainty stemming from global trade policies.” Its share price was also down more than 20% this year, heading into Monday.

Still, when taking the long view, it makes sense that Skechers would be the target of such a groundbreaking footwear deal, Nikic and others told Modern Retail. After all, Skechers is the third-largest footwear brand in the world by sales, after Nike and Adidas. Its lower share price this year likely “made it a more attractive prospect for 3G Capital,” Neil Saunders, managing director of GlobalData Retail, posted on LinkedIn. And, even though Skechers doesn’t necessarily have the “cool, Gen Z, it factor” that brands like Hoka and Crocs pride themselves on, Skechers has been able to carve out its own niche: comfortable, value-oriented shoes popular with multiple generations.

“If you zoom out and look at this business over a multi-year period, it’s generated really strong revenue growth,” Nikic told Modern Retail. “It’s been a consistent market-share taker domestically and internationally. … Near-term challenges aside, they’re not selling from a position of weakness, so to speak. They’re selling from a position of strength.”

On April 24, Skechers announced it had achieved record quarterly sales of $2.41 billion, a year-over-year increase of 7.1%. Its quarterly wholesale sales grew 7.8%, while its quarterly direct-to-consumer sales grew 6.0%. For 2024, Skechers’s last full financial year, the brand reported sales of $8.97 billion, up 12.1% from 2023.

For some, Skechers may not immediately come to mind as a “buzzy” brand. According to Google Trends data, in the U.S. in 2024, people searched for Nike, New Balance and Asics more often than they searched for Skechers. Hoka accounted for almost half (42%) of its parent company Deckers’s revenue in fiscal 2024. And Jordan and Adidas are highly sought-after in the resale market, especially when it comes to the Air Jordan and Samba.

But there are a few reasons why Skechers has managed to stand out, sources say. For one, “Skechers has done a better job than essentially anybody else of merging value and comfort,” Nikic said. Demand for comfortable shoes surged during the pandemic, but many customers found themselves paying a premium for such footwear. Skechers, meanwhile, calls itself the “Comfort Technology Company” and offers many shoes for under $50.

What’s more, Skechers has a large global business, which has helped its popularity abroad. Skechers’s products are available in more than 170 countries and territories, and international sales represented 65% of its business in its most recent quarter. Skechers is particularly focused on Latin America, Nikic noted, a key differentiator. “Every brand out there wants to build a big business in Europe,” Nikic said. “Skechers doesn’t limit their geographic focus to a few markets.”

In addition, while many other brands have been chasing Gen Z, Skechers hasn’t made the demographic a key focus. Crocs, for example, is on Gen-Z research and strategy firm DCDX’s list of the top 25 “magnetic brands” of 2024, a metric it calculates based on user-generated content. Hoka has mentioned that it’s seeing “momentum with younger consumers in the U.S,” while Ugg and On Running are gaining traction with older teenagers, per Piper Sandler.

Skechers, on the other hand, has always been an “ends-of-the-age-spectrum kind of brand,” Nikic explained. While the brand has taken off on social media platforms like TikTok — this recent video has 3.2 million views, for instance — Skechers has found its footing with young children and older demographics, as well as employees who are on their feet all day working in doctors’ offices or restaurants, Nikic said. “They’ve never been a big quote-unquote fashion brand,” he explained.

What Skechers does have, though, is a history of quick thinking and adaptability. “They’re very nimble,” Matt Powell, founder of the consultancy Spurwink River, told Modern Retail back in January, months before the Skechers-3G Capital deal was announced. Powell pointed out that, several years ago, when Nike yanked many retail partnerships, Skechers did the opposite, upping its focus on wholesale. “Skechers just stepped right into that void and grabbed almost all of that business,” he said.

“That’s the kind of company they are,” Powell continued. “They’re very entrepreneurial, so I’m keeping an eye on them.”

In a joint statement on Monday, 3G Capital’s co-managing partners Alex Behring and Daniel Schwartz said 3G Capital is “built to partner with companies like Skechers.” 3G Capital once held investments in Kraft-Heinz and Restaurant Brands International, per PitchBook.

“Skechers is an iconic, founder-led brand with a track record of creativity and innovation,” Behring and Schwartz said. “We have immense admiration for the business this team has built and look forward to supporting the Company’s next chapter.”