
Skechers downgraded as window for another bidder to emerge has closed
'We are downgrading to Hold as the window for another bidder for Skechers to emerge has closed,' the analysts wrote.
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—figures that align with the firm's prior price target but fall short of its bullish case.
'Sector valuation is +24% from April lows and now in line with 10 and 5 yr median P/E, awaiting more trade deals,' the analysts noted.
TD Cowen called this the 'largest deal in Softlines Retail sector history,' well above the $2.5 billion Reebok acquisition, and framed it as 'opportunistic investing in the sector during a time of uncertainty.'
The deal is said to include a unique structure: shareholders may receive either $63 in cash, or $57 in cash plus one LLC unit, with proration.
'Insiders owned roughly 14% of the shares pre-deal,' TD Cowen said, and stand to collect over $1.3 billion in proceeds.
They add that 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.
But near-term concerns remain: 'Capex as a % of sales is reaching all-time highs,' and the business model is 'heavy on distribution growth and working capital needs.'
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Business Insider
a minute ago
- Business Insider
Microsoft CEO calls job cuts in the midst of big profits the 'enigma of success' in internal memo
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Nadella acknowledged what he called the "uncertainty and seeming incongruence of the times we're in." "By every objective measure, Microsoft is thriving—our market performance, strategic positioning, and growth all point up and to the right," Nadella wrote. "We're investing more in CapEx than ever before. Our overall headcount is relatively unchanged, and some of the talent and expertise in our industry and at Microsoft is being recognized and rewarded at levels never seen before. And yet, at the same time, we've undergone layoffs." Nadella penned a similar note in 2023. That year, Microsoft announced its first massive layoff of the post-pandemic era and also paused raises. At the time, some employees blasted the CEO for praising the company's successes without acknowledging those tough moves. This time, the CEO took a more balanced approach. Read Nadella's full memo: As we begin a new fiscal year, I've been reflecting on the road we've traveled together and the path ahead. Before anything else, I want to speak to what's been weighing heavily on me, and what I know many of you are thinking about: the recent job eliminations. These decisions are among the most difficult we have to make. They affect people we've worked alongside, learned from, and shared countless moments with—our colleagues, teammates, and friends. Please help BI improve our Business, Tech, and Innovation coverage by sharing a bit about your role — it will help us tailor content that matters most to people like you. What is your job title? (1 of 2) Entry level position Project manager Management Senior management Executive management Student Self-employed Retired Other What products or services can you approve for purchase in your role? (2 of 2) Advertising / Marketing Client / Account Management Company strategy HR / Training / Office support Managing budgets IT / Telecoms / Tech Recruiting new employees Sales Software development Financial Other None of the above Continue By providing this information, you agree that Business Insider may use this data to improve your site experience and for targeted advertising. By continuing you agree that you accept the Terms of Service and Privacy Policy Thanks for sharing insights about your role. I want to express my sincere gratitude to those who have left. Their contributions have shaped who we are as a company, helping build the foundation we stand on today. And for that, I am deeply grateful. I also want to acknowledge the uncertainty and seeming incongruence of the times we're in. By every objective measure, Microsoft is thriving—our market performance, strategic positioning, and growth all point up and to the right. We're investing more in CapEx than ever before. 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That's the shift we are driving—from a software factory to an intelligence engine empowering every person and organization to build whatever they need to achieve. Just imagine if all 8 billion people could summon a researcher, an analyst, or a coding agent at their fingertips, not just to get information but use their expertise to get things done that benefit them. And consider how organizations, empowered with AI, could unlock entirely new levels of agility and innovation by transforming decision-making, streamlining operations, and enabling every team to achieve more together than ever before. That's the empowerment our mission enables, creating local surplus in every company, community, and country. And that's our opportunity ahead. Our what: priorities To deliver on our mission, we need to stay focused on our three business priorities: security, quality, and AI transformation. We are doubling down on the fundamentals while continuing to define new frontiers in AI. Security and quality are non-negotiable. Our infrastructure and services are mission critical for the world, and without them we don't have permission to move forward. We've made substantial progress across SFI, QEI, and Engineering Thrive this year, and they remain top priorities to ensure that we continuously improve our innovation velocity and our operational metrics. We will reimagine every layer of the tech stack for AI—infrastructure, to the app platform, to apps and agents. The key is to get the platform primitives right for these new workloads and for the next order of magnitude of scale. Our differentiation will come from how we bring these layers together to deliver end-to-end experiences and products, with the core ethos of a platform company that fosters ecosystem opportunity broadly. Getting both the product and platform right for the AI wave is our North Star! Our performance this past year has positioned us well. 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Teams are reorganizing. Scopes are expanding. New opportunities are everywhere. It reminds me of the early '90s, when PCs and productivity software became standard in every home and every desk! That's exactly where we are now with AI. Years from now, when you look back at your time here, I hope you'll say: "That's when I learned the most. That's when I made my biggest impact. That's when I was part of something transformational." What we've learned over the past five decades is that success is not about longevity. It's about relevance. Our future won't be defined by what we've built before, but by what we empower others to build now. And I know that with your dedication, drive, and hard work we can go win together, and change the world in the process. I look forward to sharing more at Earnings next week and addressing your questions at our next Town Hall. Satya

USA Today
a minute ago
- USA Today
Trump says he wants Elon Musk to 'THRIVE' after threatening his subsidies
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Forbes
2 minutes ago
- Forbes
Trump Says He Wants Musk To ‘Thrive' As Epstein Backlash Swells
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