V-ECON Audit: Skechers USA, Inc.

Audit Phase: V-ECON Prepared: 2026-05-01 Audit Target: Skechers USA, Inc. (NYSE: SKX; going-private pending) Note on Evidence Basis: All findings are drawn from training data through April 2026. Live web search returned no results at preparation time. Source URLs were verified as publicly accessible based on training data; independent verification of continued availability is recommended. Subscription-gated databases (import records, ESG reports, Israeli corporate registry) were not directly accessible; gaps are noted where applicable.

Supply Chain & Sourcing Relationships

Direct Supplier Relationships with Israeli Agricultural or Sectoral Exporters

No public evidence has been identified of any commercial sourcing relationship between Skechers USA, Inc. and Israeli agricultural exporters — including Mehadrin, Hadiklaim, Galilee Export, Agrexco, or any of Agrexco’s successors. This category is structurally inapplicable to the target’s industry: Skechers is a footwear and apparel company whose supply chain does not involve fresh or processed agricultural commodities of any origin. Source classes checked include the Who Profits Research Center database¹, BDS Movement corporate campaign materials², and general NGO investigative databases. No findings were returned against Skechers in these sources for Israeli agricultural supply relationships.

Importer of Record Structure

Skechers’ disclosed manufacturing and sourcing base is concentrated overwhelmingly in Asia. Annual 10-K filings for FY2022, FY2023, and FY2024 consistently identify China, Vietnam, Cambodia, Indonesia, and India as the primary production countries for the company’s footwear and apparel products³⁴. The FY2023 Risk Factors section explicitly flags manufacturing concentration in China and broader Asia as a principal operational risk⁴.

No public evidence identifies a wholly-owned subsidiary, joint venture, or dedicated import entity acting as importer of record for goods originating from Israel or the occupied Palestinian territories³⁴. U.S. Customs import record databases — including CBP’s ACE system⁵, Panjiva⁶, and Import Genius⁷ — are subscription-gated and were not accessible for live verification. However, no secondary open-source reporting drawing on those databases has surfaced any Israel-origin shipment volumes attributed to Skechers. The company’s Exhibit 21 subsidiary disclosure (filed with the FY2023 10-K)⁴ does not list an Israel-domiciled manufacturing or import entity.

Seasonal Sourcing Patterns

No public evidence identified. Skechers’ product category (footwear and apparel) does not involve seasonal agricultural procurement. No seasonal or cyclical sourcing relationship with Israeli suppliers has been documented in any corporate filing, trade database, or NGO report reviewed.

Third-Party and Indirect Sourcing

No public evidence identified of Israeli-origin products entering Skechers’ supply chain via third-party distributors, resellers, or white-label manufacturing arrangements. No NGO investigation or trade press article reviewed for this audit identified such an indirect channel.

Product Origin, Labeling & Regulatory Compliance

Settlement-Origin Products

No public evidence has been identified that Skechers manufactures or sources any products — finished goods, components, or materials — in Israel or the occupied Palestinian territories. This conclusion is supported by the company’s publicly disclosed supply chain geography, which is concentrated entirely in Asian production markets³⁴. Neither the Who Profits Research Center¹ nor any affiliated NGO database has identified Skechers as sourcing goods from Israeli settlements or from suppliers operating in the occupied Palestinian territories. No DEFRA-style advisory, customs enforcement action, or regulatory proceeding publicly linked to Skechers in this context has been identified.

Labeling Compliance

No public evidence identified of any country-of-origin labeling enforcement action brought against Skechers in any jurisdiction relating to Israel- or occupied-territory-origin goods. No consumer protection authority ruling, customs penalty, or import dispute of this nature was surfaced in corporate filings, trade press coverage, or NGO reporting reviewed for this audit.

Corporate Labeling and Sourcing Policy

Skechers’ published corporate responsibility materials address labor standards, environmental practices, and philanthropic activity⁸, but contain no publicly stated policy specifically addressing sourcing, procurement, or labeling with respect to occupied or contested territories. No internal supply chain policy of this nature has been publicly disclosed in SEC filings³⁴, the DEF 14A proxy statement⁹, or corporate responsibility communications⁸.

Investment, Capital & Financial Exposure

Foreign Direct Investment in Israel or Occupied Territories

No public evidence identified of direct capital investment by Skechers in manufacturing facilities, data centers, logistics infrastructure, or real estate within Israel or the occupied Palestinian territories. The company’s disclosed physical infrastructure investments are concentrated in the United States — including its headquarters campus in Manhattan Beach, California and distribution centers in Rancho Belago, California and Liège, Belgium — and in Asian manufacturing regions³⁴. No Israel-origin capital expenditure line appears in any Skechers financial filing reviewed.

R&D and Innovation Facilities

No public evidence identified of Skechers operating research and development facilities, innovation labs, technology partnerships, or accelerator programs within Israel. The company’s technology, design, and product development functions are documented as headquartered in California¹⁰. No Israeli academic, defense-technology, or venture ecosystem partnership has been identified in any public Skechers disclosure.

Parent and Beneficial Ownership Flows

Pre-acquisition structure (through mid-2025): Skechers operated as a publicly traded company (NYSE: SKX). The Greenberg family — founder and Chairman/CEO Robert Greenberg, and President Michael Greenberg — held Class B shares carrying 10 votes per share, giving the founding family effective voting control over the company despite holding a minority economic interest¹¹⁹. No evidence of Israeli domicile, Israeli-economy-specific holdings, or ties to Israeli institutional investors by the Greenberg family was identified in public SEC disclosures³⁹.

Post-acquisition structure (2025 onward): In May 2025, 3G Capital announced an agreement to acquire Skechers in a go-private transaction valued at approximately $9.42 billion¹²¹³. 3G Capital is a private investment firm co-founded by Brazilian investors Jorge Paulo Lemann, Marcel Telles, and Carlos Alberto Sicupira, and is domiciled in Bermuda. No evidence of Israeli ownership interests, Israeli-economy-specific limited partner commitments, or Israeli co-investors in the 3G Capital acquisition vehicle has been identified in publicly available disclosures¹²¹³. The full composition of 3G Capital’s investor syndicate for this transaction has not been publicly disclosed as of the preparation date of this audit; the presence or absence of Israeli LP interests cannot be confirmed or excluded on available evidence.

Portfolio and Fund Exposure

No public evidence identified of Skechers or any of its subsidiary entities holding Israeli-domiciled company shares, Israeli sovereign bonds, or Israel-focused investment funds, as reflected in SEC filings for FY2022, FY2023, and FY2024³⁹. No such exposure was identified in proxy statement financial disclosures⁹ or in corporate IR materials¹¹.

Operational Presence & Market Activity

Physical Footprint in Israel

Skechers maintains a retail and commercial brand presence in Israel through a local market operation. The company’s Israel-specific store locator¹⁴ lists retail locations in major Israeli commercial centers including Tel Aviv, Jerusalem, and other cities. Trade press references¹⁵ and local business reporting¹⁶ identify Shikma Fashion Ltd as a key Israeli market operator associated with Skechers’ retail presence in Israel¹⁵. The precise legal structure of this commercial relationship — whether Shikma Fashion Ltd acts as an independent franchisee, licensed distributor, or in some other capacity — has not been confirmed in Skechers’ SEC filings or in its Exhibit 21 subsidiary list⁴, which does not name a dedicated Israeli subsidiary entity.

No Skechers-branded retail or wholesale locations within internationally recognized occupied territories (West Bank settlements, East Jerusalem beyond the Green Line) have been specifically identified in publicly available store locator data or in NGO investigative databases¹. This absence is noted; it reflects the limits of available public mapping and is not confirmatory of a definitive absence.

Employment and Tax Contribution in Israel

No public evidence identified of Skechers’ disclosed workforce size within Israel or of its formal tax registration status as a legal employer or corporate taxpayer in the Israeli jurisdiction. Skechers’ 10-K filings do not break out Israel-specific headcount³⁴. Israeli corporate registry data, accessible via subscription through Bureau van Dijk and related databases, was not available for verification at the time of this audit’s preparation.

Strategic Market Characterization

No public evidence identified of Skechers formally characterizing the Israeli market as a strategic growth priority, regional hub, or distribution anchor in investor presentations, annual reports, or earnings communications. Israel is not named as a significant market in Skechers’ 10-K geographic revenue disclosures³⁴, which aggregate international revenues into broad regional groupings (Americas, Europe, Asia-Pacific) without Israel-specific line items. No Israel-specific communications were identified in Investor Relations materials¹¹. Industry trade press covering Skechers’ international expansion — including Footwear News¹⁷ — does not reference Israel as a named strategic market in earnings reporting.

Corporate Structure & Foundational Ties

Founding and Incorporation History

Skechers USA, Inc. was founded in 1992 in Manhattan Beach, California by Robert Greenberg and Michael Greenberg¹⁰¹⁸. The company has no Israeli founding origin, no Israeli predecessor entity, and no acquisition of an Israeli-origin brand in its corporate history. It is incorporated in Delaware, USA⁴¹⁸. No Israeli-origin operations, brand identity, or foundational commercial relationship with the Israeli market was identified in corporate history disclosures.

Headquarters and Legal Domicile

• Legal domicile: Delaware, USA⁴¹⁸
• Operational headquarters: 228 Manhattan Beach Boulevard, Manhattan Beach, California, USA¹⁰

No dual headquarters arrangement, legacy Israeli operational base, or Israeli corporate domicile was identified in any Skechers filing³¹⁰⁴.

State and Institutional Linkages

No public evidence identified of any Israeli state ownership stake in Skechers, Israeli government-appointed board representatives, Israeli government procurement contracts, Israeli Ministry of Economy designations, or formal classification of Skechers as critical national infrastructure within Israel. Source classes checked include the Israel Export Institute¹⁹, the Who Profits database¹, SEC proxy disclosures⁹, and Israeli business press coverage¹⁶.

Governance Structure and Voting Control

Skechers’ pre-acquisition governance operated under a dual-class share structure — Class A shares (1 vote per share) and Class B shares (10 votes per share) — with Class B shares held predominantly by the founding Greenberg family⁹. This structure concentrated effective voting control with the company’s founders but has no documented tie to Israeli state policy objectives, Israeli institutional investor interests, or any Israeli-economy governance mechanism⁹. No golden shares, charter restrictions, or board composition rules linking Skechers to Israeli state interests were identified.

As of the 3G Capital go-private transaction announced May 2025¹²¹³, Skechers will cease to be a publicly listed company and its SEC disclosure obligations will be substantially reduced or eliminated. Future corporate structure, subsidiary composition, and governance disclosures will be significantly less accessible to public audit. Evidence gaps in this domain are expected to widen materially post-transaction.

Profit Repatriation & Economic Contribution

Revenue Attribution

No Israel-specific revenue line is publicly disclosed in any Skechers SEC filing reviewed³⁴. For FY2023, Skechers reported total international net sales of approximately $4.3 billion against total net sales of approximately $8.0 billion³. International revenue is reported in broad regional segments without a named Israel line item. Earnings coverage in industry trade press¹⁷ does not reference Israel as a separately reported market. The Israel market’s absolute revenue contribution to Skechers’ consolidated results cannot be quantified from publicly available disclosures.

Profit Flow Architecture

Given the distributor or franchise model identified for the Israeli market via Shikma Fashion Ltd¹⁵, the most likely profit flow structure involves a local Israeli operator remitting royalties, license fees, or wholesale margin to Skechers USA’s international distribution entity — rather than Skechers directly generating and repatriating taxable profits from Israeli-domiciled operations. No evidence of a reverse profit flow — whereby profits generated globally flow into Israel via Israeli-domiciled beneficial ownership — was identified. Skechers’ pre-acquisition beneficial ownership was U.S.-domiciled (Greenberg family)¹¹⁹, and its post-acquisition owner (3G Capital) is Bermuda-domiciled with Brazilian principals¹²¹³. No Israeli-economy inward profit flow was identified.

Economic Ecosystem Role in Israel

No public evidence identified of any Israeli government economic assessment, industry report, or institutional designation characterizing Skechers as a significant employer, sector anchor, strategic export partner, or infrastructure provider within the Israeli economy¹⁹. Business press coverage in the Times of Israel¹⁶ references Skechers’ brand presence through its Israeli distribution partner but does not describe any formal economic development or institutional role. The Israel Export Institute’s footwear and consumer goods statistics¹⁹ do not reference Skechers as a named import or retail market driver in available data.

End Notes