From Yahoo Finance: 2025-05-27 06:02:00

Retailers are considering going private to escape market chaos caused by Trump’s trade war. Skechers’ take-private deal with 3G Capital for $9.4 billion has sparked interest from other retailers. Tariff announcements have hit retailers hard, leading to frustration over inability to give earnings guidance.

Skechers had been in talks with 3G Capital before its market value dropped to $7.4 billion due to tariff announcements. Most of Skechers’ products are made in China and Vietnam, leading to uncertainty. The Greenberg family, majority owners of Skechers, found the idea of going private appealing amidst tariff turmoil.

Skechers’ decision to go private with 3G Capital shields its earnings from public scrutiny and protects its valuation from market swings. Other retailers are also in talks to sell to investment firms. Trump’s tariffs have hit retailers hard, with the S&P Retail Select Industry index falling 6% year-to-date.

CEOs of retailers are considering going private to avoid reporting to the public amid market volatility. Companies with controlling stakes can sign deals faster. Under Armour, Columbia Sportswear, and Birkenstock are potential take-private targets. Skechers’ decision to go private aligns with the family’s thinking to navigate market uncertainty.

Read more: Analysis-Retailers pummeled by Trump’s trade war entertain more ‘take-private’ offers