Latest news with #RobertGreenberg
Fashion United
5 days ago
- Business
- Fashion United
Skechers: Why a sneaker brand without cult status is worth 9.4 billion dollars
If the announced sale of the US sneaker brand Skechers does indeed go through in the third quarter of this year, this deal will go down in history as the largest transaction to date in the sneaker market. Why is Skechers so interesting? Not 'cool', but the third largest sneaker brand in the world First things first: with global annual revenue of 8.9 billion dollars in 2024 and an increase of 12 percent compared to 2023, Skechers is the third largest sneaker brand in the world after Nike (51 billion dollars) and Adidas (24 billion dollars). However, Skechers has never been the coolest sneaker brand. Founded in California in 1992, Skechers has always been one of those brands that people might wear because they are comfortable and affordable, but they do not really talk about. This only changed briefly when Britney Spears became the face of Skechers' campaigns around the year 2000, and the sneaker brand was able to benefit from the singer's meteoric rise. If one wants to attribute any cult status to Skechers today, it is probably most likely thanks to the models from that era. 3G Capital wants to pay 9.4 billion dollars for Skechers The fact that the Brazilian private equity firm 3G Capital submitted a takeover bid of 9.4 billion dollars for Skechers in May 2025 is therefore less likely to be due to the brand's special appeal. Skechers' success story is actually based on having consistently pursued a coherent concept of a comfortable, affordable product with an ambitious growth and distribution strategy. 3G Capital does not doubt the success of this strategy. Despite the change from a publicly listed company to private hands, the chosen path is to be maintained. Robert Greenberg, 85, founder and CEO of Skechers to this day, is to remain on board with his team, and the headquarters will also remain in California. Likewise, the strategy – style, comfort and innovation at an affordable price – is to be continued unchanged, according to company statements. "Without the team that Skechers has, the company would be worth significantly less," WWD quoted one banker as saying. The 5,000th store opened in Bogota, Colombia. Credits: Skechers USA Inc. Strong wholesale business and expansion of the store network Skechers has apparently done a lot of things right. With an estimated market share of 52 percent in 2024 in America and a global retail network of over 5,300 stores, including 592 in the US, Skechers has enormous market power. The company is represented in over 170 countries and has continuously gained market share both domestically and internationally in recent years. This is not only in the competitive domestic market and in Europe, but also in markets that receive less attention yet are huge, such as Latin America. International sales (outside the US) accounted for 62 percent of total revenue last year. The focus on the wholesale business in recent years was also economically clever. After market leaders such as Nike and Adidas announced in the past that they wanted to prioritise direct sales and reduce wholesale, gaps arose in the ranges of many shops that had to be closed. Skechers was able to adapt quickly to changing conditions and take over a large part of Nike's business, writes the trade magazine Modern Retail. In the first quarter of the pandemic year 2022, for example, wholesale grew by 33 percent worldwide, and even by 40 percent in the US and EMEA, while direct sales only increased by 16 percent. At the same time, Skechers has massively expanded its retail network in recent years: from 2,570 stores at the end of 2018 to 4,170 stores in 2021, to 5,300 in 2025. The long-term goals are correspondingly ambitious: The company is "on the way to 10,000 Skechers stores," announced Greenberg. Skechers is therefore not being sold from a position of weakness, but is rather cashing in on its strong position. This is probably also the reason why the takeover was described as "surprising" by many market observers. Skechers shoes. Credits: Skechers US customs policy affects 2025 forecast However, the trade war between the US and China may have had a favourable effect on a takeover by 3G Capital. According to press reports, Skechers manufactures 40 percent of its shoes in China, where US import duties were supposed to have been 145 percent at times this spring. As a result, Skechers withdrew its forecast for the year at the end of April, despite a new sales record in the first quarter, citing "macroeconomic uncertainties due to global trade policy". After all, not only could duties have a negative impact on the calculation, but higher prices overall could lead to a deterioration in US consumer sentiment, as well as anti-American sentiment abroad, so the thinking goes. After the withdrawal of the forecast, the share price fell by more than 20 percent, but climbed again by almost 25 percent after the takeover announcement a few weeks later. New growth area: Performance The fact that Skechers has been working intensively on its entry into the performance market in recent years should speak for the further positive development of the company. For those who have stood for comfortable everyday sneakers with innovations for decades, the performance market is a logical further development – even if Skechers is entering into direct competition with Nike and Adidas here. In 2023, the company entered the high-turnover football market with the launch of football boots and secured a strong brand ambassador through the cooperation with Harry Kane, captain of the England national team and star of FC Bayern Munich. Kane wore Skechers football boots on the pitch at UEFA Euro 2024. Further debuts followed in the sports of luge and basketball, as well as collaborations with running events, for example by sponsoring ATW running events in the UK. Skechers football boots Credits: Skechers/Business Wire With the opening of the first pure performance stores, Skechers entered a next phase. In January 2025, Skechers opened its first "Skechers Performance" flagship store worldwide in the Canadian city of Edmonton, followed in May by the first European performance store in Ghent, Belgium. There, the brand offers shoes, clothing and accessories for sports such as basketball, golf, football and pickleball on over 700 square metres. The interior of the new Ghent Skechers store Credits: Skechers Apart from the macroeconomic distortions of current global trade policy, which are affecting all market participants, Skechers' prospects remain good. In view of the sharp price increases in the sports market in recent years, Skechers' price-conscious positioning could prove to be an even stronger argument for future growth. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
Yahoo
25-07-2025
- Business
- Yahoo
Kizik Parent Sues Skechers for Allegedly Knocking Off Hands-Free Slip-On Shoe Tech
Kizik parent company HandsFree Labs has filed a new lawsuit against Skechers USA for allegedly infringing on its footwear patents. In a lawsuit filed July 24 in the U.S. District Court for the Eastern District of Texas, Kizik is claiming that Skechers 'knowingly and willfully infringed' four HandsFree Labs utility patents, which protect core mechanical innovations that enable true hands-free shoe entry, as well as two HandsFree Labs design patents, which protect ornamental innovations. More from WWD Skechers Secures Legal Win to Move Forward on Acquisition Skechers Signs WNBA Star Jackie Young, Expands Basketball Lineup With Custom SKX Nexus Sneakers Hands-Free Brand Kizik Is Popping Up in 8 Cities Across US With Mobile Try-On Activation Kizik stated that the case centers around Skechers' fast-growing Hands Free Slip-ins line, one that Skechers has positioned as a major innovation. Kizik is claiming that Skechers is using the patented technologies that it invented, developed, and protected years before Skechers entered the category. 'With its growth stagnating, this new shoe category was critical for Skechers,' HandsFree Labs claimed in the lawsuit. 'Skechers founder and CEO Robert Greenberg even acknowledged that Hands Free Slip-ins technology was 'integral to our global growth.' From their debut just a few years ago, Skechers Hands Free Slip-ins now account for around 35 percent of the products listed on its website. That astonishing growth recently fueled a windfall $9.42 billion acquisition announcement — with $1.1 billion going straight to Mr. Greenberg.' FN has reached out to Skechers for comment. 'This isn't just a product Skechers copied, it's a category we created,' Gareth Hosford, chief executive officer of HandsFree Labs, said in a statement. 'From the start, our mission was clear – to revolutionize how people put on their shoes. We believed this everyday task could be easier, faster, and more convenient. We poured our energy into developing the technology to solve a real-world problem and make hands-free shoes a reality. We're now forced to defend that work against a company that chose to imitate rather than innovate.' HandsFree Labs said that it holds a global intellectual property portfolio of more than 200 issued and pending patents covering multiple proprietary hands-free footwear systems, including its Cage, Flex Arc, and Squeeze It technologies. Since 2019, HandsFree Labs noted that it has licensed its technologies to partners like Nike, but that Skechers has not contacted the company to license its patents. 'The real danger here isn't just to our company, it's to innovation itself,' Hosford added. 'When billion-dollar brands can openly copy protected technologies and profit from doing so with no consequences, it sends a dangerous message to every entrepreneur, engineer, and inventor: your work doesn't matter. We can't accept that. And we won't.' This isn't the first time Kizik and its parent company have moved to protect its patents. In September, the shoe firm filed a lawsuit against Tishkoff Enterprises, LLC, dba 'Drew Shoe' for patent infringement of its signature cage technology. Kizik also alleged in the lawsuit that Drew Shoe acted with 'intentional and bad faith conduct' when designing and promoting its alleged infringing products. This lawsuit has since been dismissed, according to a filing submitted in the Southern District of Ohio on March 5. Best of WWD All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos] Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-07-2025
- Business
- Yahoo
Skechers Secures Legal Win to Move Forward on Acquisition
Score one for Skechers Inc. A California federal district court judge in Los Angeles has ruled against a pension plan investor's bid for a preliminary injunction to delay the closing of the planned acquisition of Skechers by 3G Capital. More from WWD The $9 billion go-private deal with Brazilian private-equity firm 3G Capital is the biggest shoe buyout in history, and the footwear company had already received antitrust clearance from the Federal Trade Commission. But the Key West Police Officers & Firefighters Retirement Plan (Key West) had an issue with the transaction and wanted to delay its closing on the ground that it didn't want to be forced to choose between two different shareholder elections without more information. The deal structure has one election at $63 a share and the other at $57 a share in cash and one unlisted, non-transferable equity unit in a newly formed entity that will become the parent of Skechers upon the closing of the transaction. Key West filed its lawsuit in May and a month later sought a preliminary injunction. Named as defendants were Skechers and members of the founding family — company founder, chairman and CEO Robert Greenberg and the firm's president, his son Michael Greenberg. The Greenberg family, which is also the controlling stakeholder and will retain a minority stake, has been involved in the business for the last three decades, and both father and son will continue to oversee operations post-acquisition, along with other members of current management. On Friday, U.S. District Court Judge Percy Anderson ruled against Key West, finding that it failed to establish it would likely suffer irreparable harm in the absence of preliminary relief. The court found that the required filing statement and 3G's prospectus for the offer of equity consideration contained background information regarding merger talks — detailing 3G's approach, the lack of other bidders and the Skechers' board deliberations — as well as the formation of a committee of independent directors to negotiate and approve or disapprove the deal. It also included a fairness opinion obtained by Skechers from its financial adviser Greenhill & Co., among other matters that also went into detail about financial data, projections and risk factors to inform stockholders' decision-making, according to the minutes of an in-chamber meeting last Thursday.
Yahoo
27-06-2025
- Business
- Yahoo
Skechers Secures Antitrust Clearance To Go Private, But There Could Be Delays
Skechers Inc. could see a delay in the closing date of its $9 billion go-private deal with 3G Capital. The footwear company on Tuesday received antitrust clearance from the Federal Trade Commission to proceed on its deal with 3G in what is now the biggest shoe buyout in history. The transaction is expected to close in the third quarter. More from WWD Harry Kane Lends His Signature to Skechers' First Athlete-led 'Off Pitch' Lifestyle Sneaker Drop Do Crocs Shrink in Heat? The Issue Is at the Center of a New Lawsuit Shoe Executive Richard Kirschenbaum and G-III Trade Legal Barbs But a hiccup's lurking in the background after a lawsuit was filed May 29 in a federal district court in Los Angeles. The structure of the 3G transaction at $63 a share gives existing Skechers shareholders the option of taking $57 a share in cash and one unlisted, non-transferable equity unit in a newly formed entity that will become the parent of Skechers upon closing of the deal. The Key West Police Officers & Firefighters Retirement Plan (Key West) has a problem with the deal and it wants the closing delayed until it can fully evaluate the transaction. It also doesn't want to be forced to make an election by the deadline for either the $63 per share in cash or the other cash and unlisted equity option. The complaint it filed sued Skechers, along with company founder, chairman and CEO Robert Greenberg and the firm's president, his son Michael Greenberg. The plaintiff on Monday filed a motion for a preliminary injunction to delay the election deadline and the closing of the merger. The Greenberg family has been at the center of the business for the last three decades, taking it from a start-up to a global powerhouse in the footwear industry. Father and son will continue at the helm, along with other members of current management. The deal also took some by surprise, since there was no indication that the company was being put up for sale. It's that factoid that failed to sit right with the plaintiff, who believes that a regulatory requirement calling for certain disclosures in a go-private transaction was violated. The disclosure rule is meant to ensure that shareholders get all material information needed to decide how to vote on a deal. According to TD Cowen retail analyst John Kernan, the Greenberg family owns 60 percent of the voting rights. The company's board has already given its approval. Both conditions plus antitrust approval usually pave the way for a quick close of any planned merger. And that's what the plaintiff doesn't want. Whenever these large merger deals are announced, sometimes lawsuits are filed by plaintiffs hoping to get a settlement that results in a higher price for their shares. For now, the parties have a hearing on the preliminary injunction motion that's scheduled for July 21. Skechers did not respond to request for comment. Skechers said in April that it posted first quarter net sales for fiscal 2025 of $2.41 billion, representing a 7.1 percent increase from $2.25 billion last year. Net earnings fell 2.0 percent to $202.4 million from $206.6 million in the same year-ago period. The company also pulled its financial guidance for the year, with executives on an earnings conference call noting the uncertainty over tariffs and how to navigate that turmoil. Best of WWD All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos] Sign in to access your portfolio
Globe and Mail
05-06-2025
- Business
- Globe and Mail
Third time's the charm for 1950s-era North York bungalow that fetched over-asking price
142 Haddington Ave., Toronto Asking price: $1,495,000 (February, 2025) Selling price: $1,750,000 (March, 2025) Taxes: $7,288 (2024) Days on the market: 16 Listing agents: André Kutyan and Robert Greenberg, Harvey Kalles Real Estate Ltd. The owners of this three-bedroom bungalow were disappointed by two early offers, but the same buyers resurfaced days later, both suggesting a willingness to improve their bids. One formally resubmitted a revised offer, but was rejected once more. A third attempt, coming in at $255,000 over the asking price, was accepted. 'More often than not, we'd cancel a listing and relist it at a higher price,' said agent André Kutyan. 'But because the buyers were still hanging around and actively engaged, we left it the way it was.' Done Deal: Bitter weather conditions partly to blame for slow sale of Calgary home '[My clients] had a number in mind, and we also believed it was worth more than we were getting on offer day, so we just waited a bit.' This brick-and-stone-clad bungalow with an attached garage sits on a 42- by 130-foot lot across the street from Bannockburn Public School, just west of Avenue Road. It was built in the 1950s and has 1,116 square feet of living space, including a kitchen and a dining area on the main floor. Four-piece bathrooms and entertaining areas are on both the main and lower levels. 'We had people potentially looking to living in it and renovating it, and/or tearing it down,' said Mr. Kutyan. 'The average lot depth [in this neighbourhood] is about 110 or 115 feet, and Haddington had good depth at 130 [feet].' Done Deal: Mountain view helps condo owner fetch near-asking price This property is also close to the Toronto Cricket Skating and Curling Club. 'You're just a block and a half in from Avenue Road, so there's a lot of good stuff in terms of amenities, retail and restaurants within walking distance,' Mr. Kutyan said. 'The highway is several blocks north, so it has good access.'
