Skechers gains after investor pushes for buyback, dividend, end of dual-class structure

• Skechers (NYSE:SKX) rose 3.6% after an investor revealed owning a 5.1% stake and is pushing for the footwear company to start an "aggressive" buyback and initiated a dividend.
• Tremblant Capital, which owns 6.87M Skechers (SKX) shares, said the company can "conservatively" buyback ~40% of its share over the next 10 years, according to a 13D filing. Tremblant also wants the company to eliminate its dual class structure, which the firm considers "the single largest overhang" on the stock.
• "We know management is highly aligned with shareholders as the Greenberg family owns ~$1.1B of stock," Tremblant said in a letter to Skechers board. ``However, we believe our suggestions could create greater than $4B of incremental value over the next ~10 years just for the Greenberg family alone ..."
• News of the Tremblant stake was earlier reported by Bloomberg.
• Skechers was scheduled to present at the Morgan Stanley Global Consumer and Retail Conference at 8:45am this morning.
• Late last month, Skechers said to be looking at possible IPO for Asia business.

Comments

[toddjohann]

No need for gimmicks. Just let Skechers keep doing what they do. They will be acquired or the market will catch up to them eventually. Until then enjoy the opportunity to buy this solid company, especially on dips.

[Turkey Trot]

@toddjohann Horse laugh....mature company, that is shareholder unfriendly.

[tgr65]

@toddjohann Paying a dividend is not a gimmick. And corporate governance best practice is not to have a dual class structure.

[toddjohann]

@tgr65 @turkey Trot -- always open to alternative views, but not sure why you bother to reply to me if this nonsense is the best you can muster. If you want a dividend paying no growth single class company that caters to wall street, then you have plenty of other choices. best of luck.

[Nevin_S]

it's about time.