The acquisition of Skechers by 3G Capital, the investment firm led by Brazilian billionaires Jorge Paulo Lemann, Marcel Telles, and Carlos Alberto Sicupira, sent ripples through the footwear industry with a deal valued at $9.4 billion. Announced on May 5, 2025, the transaction turns the world’s third-largest footwear company into a privately held entity, ending nearly three decades of trading on the New York Stock Exchange. Skechers, renowned for the comfort of its sneakers and dubbed “grandma’s shoes” by some, now joins 3G’s portfolio, which includes global giants like AB |AB InBev and Restaurant Brands International. The deal, set to close by the third quarter of 2025, underscores 3G’s strategy of investing in founder-led, family-controlled businesses.
This move comes amid challenges for the footwear sector, particularly due to trade tariffs imposed by U.S. President Donald Trump. These policies directly impact production hubs like China and Vietnam, where Skechers sources much of its supply chain. Headquartered in California, Skechers operates around 5,300 stores across over 180 countries, with two-thirds of its revenue generated internationally. The acquisition signals 3G’s confidence in the brand’s growth potential, especially in markets like Asia and Latin America.
Private equity destroys everything it touches, so if you wear the Skechers brand, I suggest you start looking for your replacement right now. pic.twitter.com/jd6NoZFskC
— Cat Herding Science Nerd 🔬 (@catladyactivist) May 5, 2025
The deal also strengthens the influence of Brazilian billionaires in the global footwear market. Lemann and Sicupira already hold stakes in On Holding, the Swiss group behind On Running shoes, worn by athletes like tennis player João Fonseca. By acquiring Skechers, 3G expands its footprint in a sector worth nearly $200 billion annually, according to industry estimates.
- Deal value: $9.4 billion, with a payment of $63 per share.
- 3G’s stake: Approximately 80% of the new company.
- Management continuity: Founder and CEO Robert Greenberg remains in charge.
- Global expansion: Focus on Asia and Latin America markets.
Origins of a footwear icon
Skechers was founded in 1992 by Robert Greenberg in Manhattan Beach, California, initially focusing on boots and casual shoes. Greenberg, a veteran of the footwear industry who previously launched LA Gear, built Skechers on a core principle: comfort above all. In the 1990s, the brand gained traction with its Chrome Dome model, popular among younger consumers. By 1994, Skechers began its international expansion, prioritizing markets outside the U.S. Today, it ranks as the third-largest footwear company globally, behind Nike and Adidas, with revenues exceeding $9 billion in 2024.
The brand’s success lies in its practical approach, avoiding fleeting fashion trends or a sole focus on athletic performance. Its sneakers, known for cushioned insoles and functional designs, appeal primarily to consumers over 50 but have also gained traction with younger generations. Skechers invests in technologies like enhanced cushioning and lightweight materials, setting it apart from competitors prioritizing style or high-performance gear.
Recently, Skechers has diversified into sports-specific lines, including basketball and soccer footwear. Partnerships with NBA athletes and soccer players bolster this shift, though comfort remains the brand’s hallmark. In Brazil, where Skechers has operated since 2007, the company runs 15 stores and aims to expand through franchising.
3G Capital’s playbook
The Skechers acquisition aligns with 3G Capital’s pattern of targeting family-run businesses with strong leadership. In 2021, 3G acquired 75% of Hunter Douglas, a Dutch window-blind manufacturer, retaining the founder in a leadership role and the family as minority shareholders. Similarly, the Greenberg family will hold about 20% of Skechers, with Robert Greenberg, his son Michael, and COO David Weinberg continuing in their roles.
Founded in 2004, 3G Capital is known for bold acquisitions and aggressive restructuring. The firm has controlled brands like Kraft Heinz, in partnership with Warren Buffett, and holds a majority stake in AB InBev, parent of Ambev. However, not all ventures have succeeded. Kraft Heinz lost 33% of its market value since its 2015 merger, prompting 3G’s exit in 2023. The Lojas Americanas crisis in Brazil, involving a $4 billion accounting fraud, also marked a setback in 2023.
- Acquisition model: Targeting family businesses with founders at the helm.
- Ownership structure: Families retain minority stakes, like the Greenbergs’ 20%.
- Track record: Successes with AB InBev, challenges with Kraft Heinz and Americanas.
- Growth strategy: Leveraging franchises for emerging market expansion.
Despite these hurdles, 3G sees long-term potential in Skechers. The firm is betting on the brand’s strength and its ability to grow in markets like India, where Skechers reportedly outperforms Nike in sales. Financed by 3G’s own funds and debt backed by JPMorgan, the deal reflects optimism about Skechers’ prospects in a competitive industry.
Trade tariffs and industry challenges
Trump’s tariffs, including 145% duties on Chinese imports and a 10% minimum tax on other countries, pose significant obstacles for Skechers. With much of its production in China and Vietnam, the company faces rising costs. In April 2025, Skechers withdrew its annual financial guidance, citing “macroeconomic uncertainty” tied to these trade policies. The company has begun adjusting prices and negotiating with suppliers to offset the impact.
The broader footwear industry is also under strain. Days before the acquisition announcement, Skechers joined Nike, Under Armour, and others in a letter from the Footwear Distributors and Retailers of America, urging tariff exemptions. The letter warned that the taxes could bankrupt hundreds of companies, cut thousands of jobs, and raise consumer prices. Still, Skechers benefits from its global reach, with two-thirds of sales from international markets, reducing reliance on the U.S.
3G Capital appears equipped to navigate these complexities. The firm has managed companies like AB InBev through global economic turbulence. Privatizing Skechers could enable faster strategic shifts, such as relocating production or investing in cost-saving technologies.
Global growth strategy
Skechers pursues cautious expansion, favoring franchises and local partnerships over large-scale store openings. This approach has driven its presence in over 180 countries, with 5,300 stores. In India, Skechers leads Nike in sales, while Latin America, including Brazil, is a priority for future growth. In Brazil, the current 15 stores are just the start of a broader plan.
The company also invests in infrastructure, recently expanding distribution centers in Asia and Europe while upgrading logistics. Direct-to-consumer sales, via e-commerce and company-owned stores, complement its franchise model. In 2024, international markets accounted for 60% of revenue, with strong performance in China and South Korea.
- Key markets: India, China, South Korea, and Latin America.
- Expansion model: Franchises and local partnerships to minimize costs.
- Recent investments: New distribution centers in Asia and Europe.
- E-commerce growth: Online sales as a strategic channel.
- Brazil presence: 15 stores, with plans for further openings.
The 3G acquisition is expected to accelerate these efforts, with the firm’s expertise in global brands like Burger King likely to streamline Skechers’ international operations and bolster its presence in emerging markets.
Robert Greenberg’s leadership
At 83, Robert Greenberg remains the driving force behind Skechers. Working alongside his son Michael, the company president, and COO David Weinberg, Greenberg has shaped the brand since its inception. His earlier venture, LA Gear, thrived in the 1980s but later faltered financially. With Skechers, Greenberg adopted a disciplined approach, emphasizing affordable, comfortable shoes.
His wealth, estimated at $1.1 billion by Bloomberg, is largely tied to Skechers’ stock. Greenberg’s focus on comfort over trends has built a loyal customer base, while his aversion to fads has ensured stability. His decision to stay on post-acquisition reflects 3G’s trust in his leadership.
Greenberg’s knack for spotting consumer trends has also fueled Skechers’ growth. In the 2000s, the brand tapped celebrities like Britney Spears to reach younger audiences. More recently, partnerships with athletes and influencers have broadened its appeal without compromising its comfort-driven identity.
Market response to the deal
The acquisition announcement drove Skechers’ stock up over 20% on May 5, 2025. 3G’s 30% premium, offering $63 per share, resonated with investors. The deal also allows shareholders to opt for $57 per share in cash plus a non-tradeable stake in a new holding company controlling Skechers.
Analysts view the acquisition as a strategic move for 3G to diversify its portfolio. Skechers’ loyal customer base and global footprint make it a stable asset in a resilient sector. However, some warn that trade tariffs could squeeze profit margins in the coming years.
- Stock movement: Over 20% surge on announcement day.
- Premium offered: 30% above market value per share.
- Shareholder option: $57 per share plus a stake in the new holding.
- Potential risks: Tariff-related cost pressures.
Privatizing Skechers may shield it from market volatility, giving the company flexibility to enact changes without shareholder or quarterly reporting pressures.
Skechers in Brazil
Skechers entered Brazil in 2007 but remains smaller than rivals like Nike and Adidas. Its 15 stores are concentrated in cities like São Paulo and Rio de Janeiro, with partnerships at retailers like Centauro and Netshoes boosting distribution. In 2024, Brazilian sales rose 12% year-over-year, driven by demand for comfortable footwear.
3G Capital’s deep ties to Brazil, through Ambev and Lojas Americanas, could fast-track Skechers’ growth in the region. Plans for new stores and marketing campaigns are under consideration, according to industry sources. Latin America, particularly Brazil, is a cornerstone of Skechers’ five-year growth plan.
Brazil’s high import taxes and logistical costs pose challenges. Skechers is exploring local manufacturing partnerships to cut expenses and meet rising demand. The brand also aims to strengthen its online presence with targeted digital campaigns for younger consumers.
Supply chain hurdles
Skechers’ reliance on China and Vietnam for production exposes it to geopolitical and economic risks. Trump’s 2025 tariffs have inflated import costs, prompting the company to explore alternative suppliers in countries like Indonesia and Bangladesh. Such shifts require significant investment.
Maintaining affordable prices, a core brand tenet, is another challenge. In the U.S., Skechers’ sneakers retail between $50 and $100, far below Nike or Adidas. In Brazil, prices range from $60 to $120, positioning the brand as a mid-tier option. Tariff-driven price hikes could erode this competitive edge.
- Production hubs: China and Vietnam dominate manufacturing.
- Alternative sourcing: Indonesia and Bangladesh under consideration.
- U.S. price range: $50 to $100 per pair.
- Brazil price range: $60 to $120 per pair.
- Mitigation efforts: Supplier negotiations and logistics investments.
3G’s track record of cost-cutting, seen in Burger King and AB InBev, could help Skechers address these issues, optimizing its supply chain to maintain affordability.
Next steps for the brand
Under 3G’s ownership, Skechers is poised for a new chapter. The company will continue investing in innovation, focusing on technologies that enhance comfort and durability. Plans for new sports lines and athlete partnerships aim to attract younger consumers while diversifying its audience.
Asia, particularly China and India, remains a focal point, with 500 new stores planned by 2027, largely through franchises. In Latin America, Brazil is a priority, with potential to double its store count within three years. 3G’s resources and management expertise are expected to drive these ambitions.
With Robert Greenberg at the helm and 3G’s strategic backing, Skechers is well-positioned to compete in a market dominated by giants. From its roots as a comfort-focused niche brand, Skechers now has the opportunity to solidify its status as a global footwear leader.
