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  • Skechers (SKX) Gains Market Momentum After Merger Agreement

    Skechers (SKX) Gains Market Momentum After Merger Agreement

    Following the news of a merger deal with 3G Capital, Skechers U.S.A., Inc. (NYSE: SKX) shares are rising noticeably. According to the most recent pre-market check, the stock is now worth $61.55, up 24.67%.

    The Purchase Contract

    A merger deal has been reached between Skechers and 3G Capital, a renowned global investment organization renowned for its owner-operator, long-term investment strategy. According to the deal, 3G Capital will pay $63.00 in cash for each of SKX outstanding shares, which is 30% more than the stock price of the firm as measured by its 15-day volume-weighted average.

    A Chronicle of Growth and Innovation

    Known for its “Comfort Technology” and commitment to providing quality, comfort, and design at affordable prices, Skechers has grown significantly over the past three decades.

    With $9 billion in sales annually, the company has built a loyal customer base and a strong distribution network, positioning it as one of the largest founder-led consumer products companies globally. A commitment to providing comfort-driven goods and constant innovation have propelled our outstanding track record.

    Strategic Vision for the Future Under New Ownership

    Skechers is starting a new chapter with the acquisition by 3G Capital. SKX will keep pursuing its strategic goals, including growing its global footprint, boosting direct-to-consumer sales, and improving its distribution capabilities, even with the ownership change.

    The current leadership, which consists of Chairman and CEO Robert Greenberg and President Michael Greenberg, will remain in their roles to ensure continuity in the company’s strategy. Furthermore, Skechers will keep running its business from its headquarters in Manhattan Beach, California, where it was founded more than thirty years ago.

    The agreement was unanimously approved by the company’s board of directors, providing the company with a ground-breaking opportunity to further establish itself as a global leader in performance and leisure footwear.

    Current shareholders of Skechers will have the option of receiving $57.00 in cash and one unit of unlisted, non-transferable stock in a newly formed, privately held organization that would act as SKX’s parent company once the purchase completes.

  • Here is why Skechers U.S.A. Inc. (SKX) stock performed well on Thursday?

    Skechers U.S.A. Inc. (SKX) shares gained 7.46% in after-hours on Thursday, July 22, 2021, and closed at $55.03 per share. Earlier in the morning session, SKX’s stock gained 1.89% to close Thursday’s morning session at $51.21. SKX shares have risen  66.37% over the last 12 months, and they have moved up 5.35% in the past week. Over the past three months, the stock has gained 15.05%, while over the past six months, it has declined 39.50%.

    Let’s see what are the latest news about Skechers?

    Financial results announcement

    On July 22, 2021, SKECHERS U.S.A., Inc released its financial results for the second quarter ended June 30, 2021.

    Q2 2021 financial highlights

    • SKECHERS U.S.A. sales were $1.6 billion in Q2 2021 compared to $729.5 million in Q2 2020.
    • The gross profit was $849.5 million in Q2 2021 compared to $368.6 million in Q2 2020.
    • Selling, general and administrative expenses were $652.4 million in Q2 2021 compared to $432.1 million in Q2 2020.
    • Net earnings were $137.4 million and diluted earnings per share were $0.88 in Q2 2021 compared to $68.1 million and diluted earnings per share of $0.44 in Q2 2020.
    • As of June 30, 2021, the company had cash, cash equivalents and investments totalled $1.32 billion.

    Skechers collaboration with kansaïyamamoto

    On July 21, 2021, The new variety of footwear will arrive soon on Skechers which is inspired by the late iconic Japanese designer Kansai Yamamoto.

    The limited-edition Skechers x kansaïyamamoto collection of four fashion sneakers for men and women embrace Kansai’s aesthetic and will launch on the first anniversary of his passing, July 21, in Japan, North America, and Europe.

    Official Team Footwear Supplier of the 2021 Solheim Cup

    On June 29, 2021, Skechers was named as the official footwear supplier of both the European and United States Solheim Cup Teams for the 2021 tournament, for the first time. The footwear company has designed exclusive Skechers GO GOLF Elite 3™ styles in unique colours for the United States and European teams, to be provided to players with Skechers also providing footwear to caddies and support staff during the September event at Inverness Club in Toledo, Ohio.

    Skechers crossed 80-Plus RS Rating Benchmark

    On June 28, 2021, Skechers cleared the 80-plus RS Rating Benchmark, with a jump from 78 to 81 on Monday.

    This exclusive rating from Investor’s Business Daily identifies market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock’s price performance over the trailing 52 weeks stacks up against all the other stocks in our database.

    Conclusion

    The announcement of improved Q2 2021 financial results was the reason behind its good performance on Thursday. the SKX stock can close the weekly trading by continuing its momentum on Friday as well.