"From Skechers to Foot Locker: Tariff chaos spurs record-high footwear, apparel deals", 18 September 2025

U.S. President Donald Trump's trade war is helping to push U.S. clothing and footwear acquisitions to all-time highs this year, with some companies merging to help offset tariff costs while others go private to weather the next 3-1/2 years of his presidency outside of the public market...

...Skechers announced a $9.42 billion deal in early May to go private days after it pulled its annual earnings forecasts and sent a letter, along with 75 other footwear companies, telling Trump the tariffs were an "existential threat" to the industry.

...Foot Locker, which also signed the letter to Trump, in May accelerated its $2.4 billion sale to Dick's Sporting Goods...

While both deals were in the works for months, bankers and analysts said Trump's tariffs are creating both chaos and opportunity for retailers and brands for some tie-ups.

It has driven dealmaking in the U.S. footwear and apparel sectors to roughly $21 billion in deals announced year-to-date...

Morgan Stanley advised Canadian apparel maker Gildan Activewear on its deal last month to buy U.S. underwear maker Hanesbrands for $2.2 billion.

Both companies produce more in Central America and the Caribbean than in Asia, and mostly use U.S.-grown cotton, giving them some protection from tariffs. The combination insulates them more from fluctuating geopolitics, and Gildan was one company looking to get bigger amid the chaos.

“We think that we’re really well aligned to take advantage, actually, of this near-shoring opportunity,” Gildan’s CEO and co-founder Glenn Chamandy said on an August investor call about the deal...

This year, JPMorgan...advised 3G Capital for Skechers and brand management firm Authentic Brand Group’s $1.4 billion deal last month for Guess.

Authentic also picked up Dockers from Levi Strauss, while another brand management firm Bluestar Alliance announced a deal to buy Dickies from VF Corp...

Brand management firms typically buy a brand's IP and then license it to operating partners that have the manufacturing, design and sales responsibilities...

Going private, like in Skechers’ case, is becoming an increasingly attractive option to navigate the uncertainty without the pressure of public quarterly reporting, especially if companies feel the public market is not valuing them appropriately...

Trump's April 2 self-styled "Liberation Day," when he announced sweeping new global tariffs, helped seal the deal a bit earlier than expected, according to an SEC filing.

Foot Locker said tariffs were causing the company's stock to drop and it was headed for a weaker-than-expected first-quarter earnings report that executives worried would further drive down its shares...

Private equity firm Bain Capital is trying to offload its stake in Canada Goose and Lands' End has received offers from brand management firms.