Sketcher’s Stock Skyrockets 25% After Company Agrees to Euthanize Stock With $8.2bln P/E Deal…

Call your dad and call your grandpa because their numero uno shoe (read: Skechers) is officially getting taken private. And today, Wall Street just laced up its own fresh pair of shape-ups and sprinted 25% higher on the news. 

In short, 3G capital, the the Brazilian private equity death squad known for gutting budgets, firing middle management by the hundreds, and turning sleepy consumer brands into cash flow-optimized vending machines (see:Kraft Heinz, Burger King, and every soul they’ve ever harvested) is responsible for this shindig. And now, they’re coming for Skechers—a.k.a. The shoe brand that’s somehow managed to exist in the uncanny valley between orthopedic necessity and mall-walker fashion for 30 years and still pulled in $9 billion in revenue last year. Bigly. 

3G’s paying $63 a share, a 30% premium to the stock’s pre-deal price, which is what you do when the company’s been down 28% YTD and just yanked its 2025 guidance like a dentist with a grudge. The whole thing clocks in at $8.2 billion. Naturally, the market woke up, read the announcement, and immediately decided this was the best thing to happen to Skechers since Tony Romo did that weird ad campaign pretending he actually wears them.

(Source: CNBC) 

For the record, Skechers is the third-largest footwear company on the planet—behind Nike and Adidas–-which is kind of like saying you're the third-wealthiest person at a poker table with Jeff Bezos and a guy named “Crypto Pete” who hasn’t blinked since 2021. But still, why now? Well for one, Skechers didn’t get dragged into this deal by desperation. A source close to the transaction (read: someone who probably signed an NDA and then proceeded to yeet it out the window) told CNBC that 3G’s been eyeing this for years. They just waited for the stock to tank, tariffs to hit, and the entire retail sector to look like a post-apocalyptic strip mall before making their move.

What’s more is that Skechers manufactures a hefty chunk of its shoes in China and Vietnam—just in time for a fresh round of 145% tariffs to slap the industry into next week. But apparently 3D doesn’t care. Even after Skechers got denied a letter begging for exemptions from Trump’s tariff regime, all 3G sees is value, nonetheless. Which is why, Skechers is doing what any rational, tariff-squeezed, guidance-pulling, mall-core brand would do… taking the money and running. 

(Source: Bloomberg) 

As for management, CEO Robert Greenberg, who’s been running the show since founding Skechers in 1992, isn’t going anywhere. He’s staying on post-deal, which means this isn’t a hostile takeover. It’s just a reward for legit staying alive in a world that only associates you with a mid-life crisis and BBQ cookouts on a Weber grill. 

In the end, the transaction closes in Q3 2025, but until then, the company will keep pretending it’s business as usual while 3G’s analysts quietly audit every line item on the balance sheet with an axe. For now, investors are cheering as they’ve just had their best day in like, ever with a 24.33% mooning session. 

(Source: Giphy)

Meaning, do what you will with this information and place your bets accordingly. Only time will tell whether we’ll see another big swingin’ green candle tomorrow or not. Until next time, friends… 

P.S. Oh, I’m sorry, I didn’t know you liked getting rekt. Let’s face it, retail investors get the short end of the stick all day everyday. It’s the smart money’s world, and we are just living in it–only useful when it comes to liquidity purposes in the market. Meaning, if you’re as pissed off as I was when I found out Milli Vanilli was lip syncing the whole time, then it’s time to go from investing blind, to investing smart. Luckily for you, the key is right here as a Stocks.News premium member. Click here to see exactly how our premium members are printing while others quake in the face of today’s market chaos. 

Stocks.News does not hold positions in companies mentioned in the article.