‘We’ve never seen a 44% decline in demand for a brand’: Converse is in free fall and some suspect Nike may sell it

Converse is weighing heavily on Nike’s efforts to regain momentum, despite accounting for only a small portion of the sportswear company’s sales. The brand’s latest results have also prompted questions about whether Nike will continue to keep it in its portfolio.

A small business with an outsized impact

Converse represents 2.5% of Nike’s sales. Yet in the most recent quarter, it was responsible for 20% of Nike’s overall sales decline. Converse sales fell 28% during the period, making the 118-year-old maker of the Chuck Taylor a significant drag on the company’s performance.

The figures underline the contrast between Converse’s size within Nike and its contribution to the latest weakness. While the brand is relatively small by sales, its decline has had a disproportionately large effect on the company’s reported results.

Portfolio questions emerge

The pressure comes two years into Elliott Hill’s tenure as Nike’s chief executive. The company’s broader comeback has not yet come together, while Converse’s continued decline has added another challenge to that effort.

Analysts are now openly questioning whether Nike will retain Converse. The available results establish the scale of the brand’s recent downturn, but do not indicate what decision Nike may make about its future.

What comes next

For now, Converse remains part of Nike’s portfolio and a meaningful contributor to its sales decline. Its next results will be important in showing whether the recent weakness persists, although no future outcome is provided.