This week, we take a look at Nike’s embattled brand Converse. Despite its iconic status, the brand has struggled financially leading to reports that it may be sold off. How did it get here, and what would a potential sale look like?
The Converse Chuck Taylor is one of the most iconic shoes in footwear history, and yet the brand that makes it has been struggling.
The last few years have seen Converse continue to underperform compared to the rest of Nike’s portfolio. In the most recent quarter, reported at the end of March, revenue for Converse was down 35% to $264 million. As Nike continues to evolve under the new leadership of CEO Elliott Hill, there has been rampant speculation about Converse’s future, including a potential sale to Authentic Brands Group. But how did Converse get to the position it’s in now?
According to some experts Glossy spoke with, Converse hasn’t been able to stay current as a legacy brand like some of its footwear peers.
“Converse’s issue is that it is iconic and it has not been able to shift and morph the consumer’s impression of the brand enough to allow for SKU expansion,” said Yates Jarvis, founder and principal of the e-commerce agency 2 Visions, who has advised Express and Spanx. “New Balance, on the other hand, also iconic, is an example of a brand that has been able to make that sidestep.”
While many footwear brands with a long heritage, like Asics, New Balance and Reebok, rode the wave of sneakerhead hype over the last decade, Converse was late to do so. The brand relied heavily on the iconic Chuck Taylor silhouette, but without the creative experimentation that other brands like Nike and Adidas have given to their most famous models.
“It didn’t disappear, but it stopped feeling new,” said fashion publicist and trend commentator Tracy Lamourie about Converse. “When something becomes just stable and that well-known, but there’s nothing driving new excitement about it, it loses any reason for being in terms of discovery. Younger audiences, especially new audiences, are always looking for the next new thing.”
Converse is now seeing a 15-year low in revenue and faced layoffs in February. The layoffs, combined with a March regulatory filing from Nike revealing upcoming “organizational changes” that would generate around $300 million, fueled the speculation of an imminent Converse sale.
The most likely buyer is Authentic Brands Group, which has made a habit in recent years of buying storied brands in the doldrums and revitalizing them. It has done the same with footwear brands like Reebok, DC and Sperry. Authentic declined to comment on the rumors, but Bloomberg previously reported that the company is interested, although no official talks have started.
Authentic’s strategy with Reebok is a good example of what its potential ownership of Converse could look like. After buying Reebok for $2.5 billion in 2022, ABG has invested in Reebok with a particular emphasis on reigniting its popularity in basketball. Authentic has opened a new European headquarters for Reebok in London, and brought in designer Jide Osifeso and ambassadors like WNBA player Angel Reese and Shaquille O’Neal.
The investment Authentic has put into the company is paying off, with Reebok’s annual sales increasing from $1.6 billion in 2020 to $5 billion in 2024.
“If it’s done right, an ABG acquisition could give Converse the renewed attention it deserves with new audiences,” said Wayne Elsey, a footwear industry veteran who founded the non-profit Soles4Souls. “The icon is the asset, so I wouldn’t touch Chuck, per se, but it needs to tap into its iconic cultural qualities, and have the brand show up in society through music collaborations, fashion weeks and film, and in the stories people share.”
Nike has waved off the question of a potential sale to Converse. In the company’s most recent earnings, CEO Elliott Hill said that the Converse team “took some decisive steps this quarter to bring the brand back to a healthy business.”
“Converse is a beloved brand that serves a distinct consumer through their connection to creative culture, music and youth,” he said. “Converse will remain an important part of the Nike, Inc. family, and we are excited about its long-term prospects.”
Since the layoffs, Nike does seem to have taken a different strategy with Converse. Just as Elsey suggested, Converse has revealed a flurry of collaborations and other cultural moments in recent weeks. It has released collaborations with musician Tyler, the Creator and Brendon Babenzien’s footwear brand Noah, plus it announced a signature shoe with NBA player Shai Gilgeous-Alexander this past month. And Ryan Gosling’s character wears a pair of low-top Chuck Taylors through the entirety of the recent box office hit film “Project: Hail Mary.”
“For Converse, the path forward likely isn’t reinvention but elevation,” said Joe Hale, founder and managing director of the fashion SEO agency Verde Digital, who has advised Tommy Hilfiger, Net-a-Porter and Urban Outfitters. “They’ve already experimented with this through lines like Converse First String [a line of Chuck Taylors in luxe materials like leather], but there’s room to go further. A sharper focus on cultural relevance, paired with tiered product strategy, could help them reclaim both attention and demand.”
Stat of the week
The logistics and supply chain analytics company Descartes released a new report on global shipping on Thursday that offered a look at how the ongoing war in Iran has affected the global supply chain.
A few of the report’s key findings:
- Imports from China to the U.S. in March were down 2.3% month over month and 6.7% year over year.
- Notable increases in imports include products from countries including Italy, Thailand and South Korea
- East Coast and Gulf Coast ports brought in more imports than West Coast ports last month for the first time since May 2025.
Other news to know
- The French department store Printemps is closing its store in Rennes, France and eliminating 229 jobs, citing difficulty in the global apparel industry. Meanwhile, another French department store, Galeries Lafayette, has been flourishing.
- In Levi’s earnings this week, the company thanked the TV show “Love Story” for driving a 25% increase in sales of the 517 jeans worn by Carolyn Bessette Kennedy in the show.
- An Italian court ended its administrative controls on Valentino early, after instituting the sanctions last year. Valentino was accused of outsourcing its production to Chinese-owned shops that exploited their workers.
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