Skechers(US:SKX) Jing Ji Guan Cha Bao·2025-05-06 09:38Core Viewpoint - Skechers has entered into an acquisition agreement with 3G Capital, which will purchase all outstanding shares at $63 per share, representing a 30% premium over the average stock price over the past 15 days. The deal is expected to close in Q3 2025, after which Skechers will become a privately held company [1][2]. Group 1: Acquisition Details - 3G Capital will acquire approximately 80% of the newly formed company post-acquisition [1]. - The acquisition has been approved by Skechers' board of directors [1]. - Following the acquisition, Skechers will be led by its current chairman and CEO Robert Greenberg, president Michael Greenberg, and COO David Weinberg [3]. Group 2: Company Performance - Skechers achieved a record global sales of $8.97 billion in 2024, with over 5,300 stores worldwide [4]. - Despite strong global performance, Skechers' sales in China have significantly slowed, with a 16% year-over-year decline in Q1 2025 [5]. - The Chinese market accounted for approximately 13.6% of Skechers' total revenue in 2024 [5]. Group 3: Financial Metrics - In Q1 2025, Skechers reported a 7.8% increase in wholesale sales, while average selling prices decreased by 1.3% [6]. - Direct-to-consumer (DTC) sales grew by 6.0%, with average selling prices down by 0.3% [6]. - The company's gross margin decreased by 50 basis points to 52.0%, and operating expenses rose by 12.1%, leading to an 11.3% decline in operating profit to $265 million [6]. Group 4: Future Outlook - The transition to private ownership raises questions about how Skechers will address its challenges in the Chinese market and optimize its global operations under 3G Capital's management [7].