Skechers Announces Delisting!

   Skechers has agreed to be taken private by 3G Capital for $9.42 billion in the footwear industry's biggest buyout to date, exiting public markets after 26 years as the popular shoe brand grapples with the impact of steep US tariffs.

   The deal comes amid growing uncertainty over how US President Donald Trump's tariffson foreign goods will affect companies who make their products overseas, particularly in China. Athletic shoe makers have invested heavily in production in Asia.

   The deal comes at a precarious time with Trump's ongoing, on-again-off-again tariff announcements. Like many other companies increasingly have done since Trump's widespread tariff announcements, Skechers did not issue guidance when it released its first quarter earnings in April. Chief Financial Officer John Vandemore told investors that the "current environment is simply too dynamic from which to plan results with a reasonable assurance of success."

   Analysts said the deal talks may have been accelerated by the volatile macro environment — driven by tariffs, weakening consumer sentiment and troubled China-US relations — and the company may have wished to navigate these challenges without being under Wall Street's scrutiny.

   The Footwear Distributors & Retailers of America trade group (FDRA) urged Trump to exempt shoes from reciprocal tariffs in a letter signed by makers including Nike, Adidas America, and Skechers. The FDRA letter, dated April 29, was signed by 76 footwear companies.

   "Given the nature of the US footwear industry, American footwear businesses and families face an existential threat from such substantial cost increases. Hundreds of businesses face the prospect of closure," said the letter.