Skechers Trading Volume Plummets 37.25% to $332 Million Ranking 266th in Market

On May 28, 2025, Skechers (SKX) experienced a significant decline, with its trading volume dropping by 37.25% to $332 million, placing it at the 266th position in the day's stock market rankings. The stock price fell by 0.08%.

TD Cowen has downgraded Skechers to a Hold rating, citing the closure of the window for potential competing acquisition offers following 3G Capital's announced deal. The analysts noted that the $63 per share buyout offer from 3G Capital equates to 13.5 times TD Cowen’s fiscal year 2027 earnings-per-share estimate and 6 times FY27 estimated EV/EBITDA. These figures align with the firm’s prior price target but fall short of its bullish case.

TD Cowen highlighted that the deal is the largest in the Softlines Retail sector history, surpassing the $2.5 billion Reebok acquisition. The firm framed it as opportunistic investing in the sector during a time of uncertainty. The deal includes a unique structure where shareholders may receive either $63 in cash or $57 in cash plus one LLC unit, with proration. Insiders, who owned roughly 14% of the shares pre-deal, stand to collect over $1.3 billion in proceeds. Management could maintain a sizable ownership position depending on shareholder elections.

Looking ahead, TD Cowen sees 3G pursuing margin expansion via cost-cutting and efficiencies, potentially leading to Skechers going public again. However, near-term concerns remain, including capital expenditure as a percentage of sales reaching all-time highs and a business model that is heavy on distribution growth and working capital needs.