Skechers Gets Snapped Up! Is This the End of an Era or Just a New Pair of Shoes?

A Deal is a Deal: Or is it?

Well folks it appears Skechers is stepping into a new chapter with 3G Capital. As someone who's been known to dabble in a deal or two – remember that little company called Microsoft? – I find this interesting. Sixty three bucks a share a 30% premium? Not bad not bad at all. It reminds me of the time I got Windows to run on IBM hardware – a steal! As I always say "Success is a lousy teacher. It seduces smart people into thinking they can't lose."

Retail Rollercoaster: Hold on Tight

Now let's not kid ourselves. The retail industry especially footwear is like riding a rollercoaster designed by someone who's had a bit too much coffee. You've got discretionary spending overseas supply chains and a trade war that could make even the toughest CEOs sweat. Skechers withdrawing their 2025 guidance? That's like saying "Oops maybe we shouldn't have worn those roller skates on this particular adventure." The uncertainty is palpable but hey uncertainty breeds opportunity right?

China Syndrome: Not the Movie

Of course everyone is tiptoeing around the 'C' word – China. Tariffs are up supply chains are strained and companies are starting to feel the pinch. Skechers being cagey about their China exposure is like me trying to explain the intricacies of Windows 95 to my grandma – complicated but ultimately you hope it all works out. But hey two thirds of their biz is outside the US so things could be worse. Remember what I always say about challenges? "We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten."

3G Capital's Gambit: They See the Future

Sources say this deal wasn't forced by trade issues and 3G Capital has been eyeing Skechers for years. That's commitment folks! They believe in the long term outlook. It reminds me of when I saw the potential of the internet way back when. Everyone thought I was crazy but who's laughing now? (Okay maybe not *everyone* was laughing but you get the point). Seriously though they must see something special in those shoes.

David vs. Goliath: Well Sort Of

Skechers is the third largest footwear company behind giants like Nike and Adidas. Think of it as a scrappy underdog. And the fact that Greenberg is staying on as CEO? That's reassuring. It means they aren't throwing the baby out with the bathwater or in this case chucking the shoes before they've walked a mile. "Your most unhappy customers are your greatest source of learning."

The Future is afoot: Time will tell!

So what does this all mean? Well only time will tell. But if I know anything it's that the business world is full of surprises. Will Skechers thrive under 3G Capital? Will the trade war subside? Will I finally figure out how to use TikTok? Stay tuned folks because the game is afoot and I'm placing my bets now... maybe I should buy some Skechers for the experience.