Skechers (SKX) Soars 0.76% Amid Acquisition, Lawsuit

Skechers U.S.A. (SKX) shares rose 0.76% today, marking the second consecutive day of gains, with a total increase of 0.79% over the past two days. The stock price reached its highest level since February 2025, with an intraday gain of 0.87%.

The strategy of buying SKX shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 5-year CAGR of 3.64%. While the strategy captured some of the subsequent upside, it also experienced volatility and underperformance at times, particularly in the latter part of the period. The recent high point served as a decent entry point, but the short holding period limited the overall gains. Investors may consider adjusting the holding period or combining it with other strategies to potentially enhance returns.

Skechers U.S.A. is currently in the midst of a significant transition as it is set to be acquired by private equity firm 3G Capital. This acquisition, which has been recently announced, could have a profound impact on the company's stock price as it moves towards private ownership. The acquisition process often brings about changes in market sentiment and investor expectations, which can influence the stock's performance.

Adding to the complexity, Skechers has withdrawn its outlook for the year due to macroeconomic uncertainty stemming from global trade policies. This withdrawal can affect investor confidence, as it introduces uncertainty about the company's future performance. Investors typically rely on such outlooks to make informed decisions, and the absence of this guidance can lead to volatility in the stock price.

Furthermore, Skechers is currently facing a lawsuit over the $9.4 billion go-private deal. Legal challenges related to major transactions can significantly influence market sentiment and stock price. The outcome of this lawsuit will be closely watched by investors, as it could either validate the deal or introduce further complications, affecting the company's stock performance.