Skechers deal sets ‘valuation floor’ for softlines sector, says Evercore ISI

After Skechers (SKX) announced that it agrees to be acquired by 3G Capital for $63 per share, representing roughly $9.4B in market cap, Evercore ISI says the deal amounts to 3G Capital “taking a bet on tariffs deal getting done and this sector operating profitably long-term,” though “perhaps implying that the next few quarters will be best operated away from the eye of the public markets.” As one of the largest deals in the softlines space in years, the firm thinks it “sets a hard floor for valuations across the sector in the near-term” and argues this “makes shorting these public companies very difficult in the near-term.” The firm has an Outperform rating and $60 price target on Skechers shares.