Core Viewpoint - Skechers has accepted a premium acquisition offer from 3G Capital amid increasing global trade tensions, with the deal valued at over $9 billion, representing a 30% premium over the stock's recent trading price [1][3]. Group 1: Acquisition Details - 3G Capital will acquire all outstanding shares of Skechers at $63 per share in cash, with an option for existing shareholders to receive $57 per share plus non-transferable equity in a newly formed parent company [3]. - Following the acquisition, Skechers will delist from the NYSE and operate as a private company, maintaining its headquarters, management, and core strategies, with founder Robert Greenberg continuing as Chairman and CEO [3]. - The transaction is expected to close in the third quarter of 2025 [3]. Group 2: Business Context and Risks - The acquisition timing is closely linked to changes in trade policies, as Skechers withdrew its full-year guidance for 2025 due to economic uncertainties stemming from global trade policies [4]. - Skechers has indicated that over 60% of its imported products come from Asia, making it vulnerable to rising procurement costs due to tariffs, which have pressured profit margins [4][5]. - The company reported a 16% year-over-year decline in sales in key markets like China, attributed to the rise of local brands and tariff pressures [5][6]. Group 3: Financial Performance - In Q1 2025, Skechers reported revenue of $2.41 billion, a 7.1% increase year-over-year, but net profit decreased by 2.0% to $202.4 million [6][8]. - The gross margin for Q1 2025 was 52%, down 0.5 percentage points from the previous year, reflecting challenges in maintaining pricing power amid rising costs [6][7]. - Sales growth varied by region, with Europe, the Middle East, and Africa seeing a 14% increase, while the Americas grew by 8%, and the Asia-Pacific region experienced a 3% decline, primarily due to the significant drop in China [8][9].