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Skechers is reportedly considering spinning off its Asia business into a public company.
The sneaker and clothing maker is mulling a Hong Kong-based IPO, according to Bloomberg. The company could raise around $1.5 billion through the public offering.
The move may entail buying out partners in its Asia-based business, such as Luen Thai Enterprises. Skechers and Luen Thai launched Skechers China in 2007.
- Last year, Skechers’ China revenue was $924.5 million, 20.1% of its $4.6 billion in 2020 sales.
- The company’s overall revenue grew 19.2% year-over-year to $1.55 billion in the third quarter.
- Skechers had 1,797 retail stores in Asia at the end of last year — 69.9% of its 2,570 global total. It had just 12 stores in North America.
Skechers has endorsement deals with Los Angeles Dodgers ace Clayton Kershaw, golfer Brooke Henderson, and sports legends Wayne Gretzky, Joe Montana, Tony Romo and Kareem Abdul-Jabbar.
The company is also the official sneaker supplier for the U.S. and European teams of golf’s Solheim Cup.
French officials are investigating Skechers, Uniqlo, SMCP SA, and Zara-owner Inditex over allegations that the brands benefited from forced labor in China. Skechers has said its supplier audits have not identified any such issues.
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