NEW YORK (AP) — U.S. retailers impacted by ongoing trade tensions are increasingly considering going private, following Skechers’ decision earlier this month to sell to investment firm 3G Capital for $9.4 billion.
Skechers, whose products are largely manufactured in China and Vietnam, has been hit hard by shifting tariff policies under former President Donald Trump’s administration. The company’s market valuation dropped from $11.85 billion on Jan. 30 to $7.4 billion in April. Citing “macroeconomic uncertainty stemming from global trade policies,” Skechers also pulled its 2025 earnings guidance.
The move takes the company off public stock exchanges, insulating it from volatile market reactions and quarterly earnings pressures. Majority-owned by the Greenberg family, Skechers opted to pursue a private transaction as a strategic response to unpredictable financial conditions. The company declined to comment.
According to Reuters, at least 10 investment bankers and M&A lawyers confirm that other retailers are exploring similar paths. Brands with dominant shareholders — including Under Armour, Columbia Sportswear, and Birkenstock — are reportedly in discussions about potential take-private deals, though none have publicly commented.
“The breakneck pace of the instability, the volatility, and the macro changes have made board members start thinking, ‘Would it be better to manage this business in private?’” said Kurt Anthony, head of consumer and retail investment banking for the Americas at UBS.
Jamie Salter, CEO of Authentic Brands Group, echoed the sentiment: “There are a lot of CEOs that reached out to me and said, ‘I’m tired, I love what I do, but maybe it’s time I go private.’”
The S&P Retail Select Industry Index is down 6% year-to-date, outpacing the broader S&P 500’s 1.1% decline — a signal of the growing pressure on consumer brands navigating an unpredictable trade environment.
As uncertainty over tariffs, manufacturing costs, and investor expectations grows, many retailers may see private ownership as a way to regain control over their strategic future.
