A pedestrian walks in front of a window display at a Skechers USA store in San Francisco. The company is now headed for record profit in the third quarter.

Bloomberg/New York

In case you missed it, Skechers USA is on fire.
Shares of the sneaker maker have doubled in just six months, giving it an almost $6bn market value. Its revenue gains — led by women’s sporty, slip-on shoes — have been beating every competitor. The company is now headed for record profit in the third quarter.
“I sure like the way the stock’s gone up,” said Gary Bradshaw, a Dallas-based fund manager for Hodges Capital Management, which owns Skechers shares among the $3bn it oversees. “They’ve kind of caught this fashion trend just right.”
Just last month, Skechers surpassed sportswear giant Nike’s valuation relative to earnings before interest, taxes, depreciation and amortization. Before Skechers gets any more expensive, it might make sense for a competitor such as Nike to make an offer. The $91bn industry leader still dwarfs Skechers in size and has almost enough cash on its balance sheet to cover a takeover.
Adidas AG, the $17bn German athletic footwear maker that owns Reebok, is under pressure to take back market share from Nike. Skechers would give either company a way to get in on the growing market for fashionable walking shoes and reach different customers at a lower price point.
Skechers “is well run and could be on someone’s radar,” said Barry James, chief executive officer at James Investment Research in Xenia, Ohio.
The biggest question is whether Skechers’ founder Robert Greenberg, who was 75 as of April, would be open to selling his company. Greenberg, who also developed the LA Gear brand, is chairman and chief executive officer of Skechers. His son Michael, 52, is president, and his other son Jeffrey, 47, is in charge of active electronic media. They all serve on the board and, with the family estate trustee, control more than 70% of the voting power.
“It might be a little early to think that they would necessarily be wanting to sell the company,” said Jeffrey Van Sinderen, an analyst at B. Riley & Co “But it could be attractive to private equity or a strategic buyer. They have a brand and have established it even more so over the past several years. They have a nice niche.”
Jennifer Clay, a spokeswoman for Skechers, declined to comment on whether the company has received takeover interest or has considered a sale. Representatives for Nike and Adidas didn’t respond to requests for comment.
While the stock has been rising since 2012, its biggest gains have come this year. The share price has already doubled in 2015, adding to last year’s 67% surge.
Analysts forecast an additional 10% upside to the current stock price over the next 12 months. That means it may continue to outperform Nike and Adidas, as well as Under Armour, Steven Madden and Foot Locker, according to share-price estimates compiled by Bloomberg.
Apparel companies rarely do mergers. One of the few cases was last month, when Ascena Retail Group agreed to acquire Ann, bringing together the Lane Bryant and Ann Taylor brands.
Nike also hasn’t traditionally done deals this large and doesn’t need Skechers. Its biggest purchase, the 2007 deal for Umbro, was only $619mn. It later sold the English maker of soccer cleats.