Tremblant Capital Group, which owns 5.1 percent of Skechers, wrote to the company’s board Wednesday urging it to end its Skechers’ dual-class share structure, start an aggressive share buyback program, pay a dividend and improve its communication with investors, according to a regulatory filing.
The New York-based investment firm applauded the controlling Greenberg family’s management of the brand but raised concerns about whether the family’s interests are aligned with shareholders to peers.
Tremblant urged Skechers to return some of the $1.18 billion in cash and cash equivalents it had at the end of the third quarter to shareholders.
“We believe once these concerns are addressed, shareholders will likely feel so aligned with management and the Greenberg family that unease around the founding family dynamics will dissipate, driving the multiple higher and creating tremendous value for shareholders,” Tremblant Chief Executive Officer Brett Barakett, wrote in the letter, which was also signed by Austin Stephen and Bryan Walsh.
Photo courtesy Skechers
