Blog: Leonie BarrieSkechers bid for Heelys set to roll on?

Leonie Barrie | 15 August 2008

Skechers seems determined to get a piece of the wheeled action, having just made a second bid for wheeled footwear maker Heelys. Its offer of US$142.8m or $5.25 a share beats the $4.75-5.10 per share which was tabled – and rejected – at the end of May.

So why is Skechers so keen to buy its rival? Just two weeks ago Heelys swung to a second quarter loss of $0.4m, from a profit of $12.8m in the same period a year earlier, as sales tumbled 75% to $18.2m from $74.3m. And Heelys has been beset with problems, not least of which are fears that its shoes are little more than a passing fad. It has also been saddled with high levels of inventory after retailers over-ordered and the sneakers started to fall out of favour with fickle teens and tweens.

On the positive side, Heelys could help Skechers build its children’s business, and a deal would help the Heelys brand to grow internationally through Skechers’ own stores and global distribution network.

All the indicators, though, seem to suggest Heelys will reject this offer again – perhaps opening the floor for a rival bid. So it really does look as though this deal is set to roll on a while longer.

US: Skechers tables $143m bid for Heelys


BLOG

A deep dive to unlocking digitisation's potential

So far, the promise of digitisation in the apparel industry remains largely unfulfilled. But with opportunities for new cheap supplier countries nearly exhausted, it is now seen as offering sourcing e...

BLOG

Kingpins Goes to DC – Watch now

The challenges and opportunities facing today’s textile and apparel industry is also explored in the second in a series of expert panel discussions that is now available to watch on demand...

BLOG

Industry outlook positive but disruptive

How is the global apparel sourcing landscape changing? According to executives at last month’s MAGIC fashion trade show in the US, "speed-to-market," "product differentiation" and "inventory control" ...

BLOG

Speed-to-market can be slow to achieve

It's easy for brands and retailers to see how they can potentially benefit from a successful speed-to-market program – but the irony is that without the support of strategic suppliers, it can be a lon...

just-style homepage



Forgot your password?