Beach Acquisition Co Parent, LLC

Overview

• Beach Acquisition Co Parent, LLC was incorporated in Delaware on April 28, 2025.
• Beach Acquisition is a direct, wholly-owned subsidiary of 3G Fund VI, L.P. (a Cayman Islands exempted limited partnership).
• Wholly-owned subsidiaries include Beach Acquisition Holdco, LLC; Beach Acquisition Midco, LLC; Beach Acquisition Bidco, LLC; and Beach Acquisition Merger Sub, Inc.
• Beach Acquisition completed the merger with Skechers U.S.A., Inc. on September 12, 2025.
• In this filing, Beach Acquisition and its consolidated subsidiaries and certain variable interest entities are referred to as “Beach Acquisition” or “the Company.”

Business model and reportable segments

• The Company operates two reportable segments: Wholesale and Direct-to-Consumer.

Wholesale

• Sells Skechers-branded products to partners including third-party franchisees and licensees, family shoe stores, specialty athletic and sporting goods retailers, department stores, big box stores, e-commerce retailers, and distributors in select international markets.
• Growth drivers include adding new partners, opening more third-party Skechers-branded stores, and expanding shelf space with current partners through new products.

Direct-to-Consumer

• Sells directly to consumers through company-owned Skechers-branded stores, company-owned e-commerce sites, and leading third-party marketplaces and digital platforms.
• Growth drivers include expanding the company-owned store footprint, using third-party digital marketplaces and platforms, and introducing new products.

Products and branding

• Skechers focuses on comfort and product innovation.
• Product categories:
  • Footwear for men, women, and children, including Lifestyle (fashion/athleisure), Performance (athletic and sport-specific), and Work (occupational footwear).
  • Apparel and accessories for men, women, and children.
  • Licensing of Skechers-branded products such as apparel and accessories.
• As of December 31, 2025, Skechers had 21 active licensing agreements in which it is the licensor.

Global reach and channels

• Products are marketed and sold in approximately 180 countries and territories.
• Distribution is supported by company-owned distribution centers and third-party distribution facilities.
• The U.S. market accounted for 35% of global Skechers sales in 2025.

Customers, employees, and store network

• Employees: Approximately 22,300 worldwide as of December 31, 2025 (about 11,200 full-time and 11,100 part-time, primarily in retail stores).
• Skechers-branded retail store network (as of December 31, 2025): 5,293 stores in 128 countries
  • Company-owned stores: 2,004
  • Distributor, licensee, and franchise stores: 3,289
• Store openings and closings for 2025 are disclosed in the filing.

Manufacturing, sourcing, and distribution

• Products are produced by independent contract manufacturers; the Company does not own manufacturing facilities.
• Manufacturing is primarily in Asia, including China and Vietnam.
• In 2025, the top five manufacturers produced about 39.6% of total purchases, with one manufacturer accounting for 20.8%.
• Sourcing and quality control include on-site presence at major manufacturers; products are monitored from prototype to final production; suppliers must follow Skechers’ Supplier Code of Conduct.
• Principal distribution centers:
  • North America: ~3.5 million sq ft distribution center on the main Southern California campus (leased via a joint venture) plus ~2.4 million sq ft leased from third parties
  • Canada: ~0.4 million sq ft distribution center in British Columbia
  • Europe: ~2.4 million sq ft in Liège, Belgium (expansion planned; relocation anticipated in 2028)
  • Asia Pacific: ~1.6 million sq ft in Taicang, China; ~0.9 million sq ft in Japan; ~0.8 million sq ft in India
• Expansion plans include a second China distribution center (~2.3 million sq ft) and relocation of the Liège, Belgium center.

Intellectual property and branding

• Skechers trademarks are a core asset, with trademark registrations in 168 foreign countries and a large portfolio of design and utility patents.
• The Company actively manages and enforces its intellectual property and licenses the Skechers brand for select products.

ESG, governance, and risk context

• The filing includes risk factors related to consumer brand, competition, supply chain, dependency on third-party manufacturers, currency and tariff exposure, legal proceedings, cybersecurity, and governance structure.
• The amended and restated limited liability company agreement provides exclusive Delaware forum provisions and a jury-trial waiver.
• 3G Capital (Fund VI) maintains influence through majority voting power and director appointments.

Revenue and income

• The U.S. market represented 35% of Skechers’ global sales in 2025.

One-sentence summary

Beach Acquisition, after acquiring Skechers in September 2025, operates Skechers as a global footwear, apparel, and accessories brand with Wholesale and Direct-to-Consumer segments, a large international store and distribution network, outsourced manufacturing through independent contract suppliers, and a diversified global footprint across approximately 180 countries.