Quick Facts
- Converse Q3 2026 revenue fell 35% to $264 million with declines across all territories
- Brand revenue has dropped $700 million over two years from $2.4 billion in fiscal 2023 to projected $1.2 billion
- Authentic Brands Group has expressed interest in acquiring Converse if Nike decides to sell
Converse posted its worst quarterly performance in recent history with Q3 2026 revenue falling 35% to $264 million. The Nike subsidiary swung to a $40 million EBIT loss compared to a $39 million profit in the same quarter last year.
The brand’s decline has accelerated dramatically. Converse generated $2.4 billion in fiscal 2023 but dropped to $1.7 billion in fiscal 2025. At its current trajectory, the company is heading toward approximately $1.2 billion in annual revenue – its lowest level since before fiscal 2018.
Nike CEO Elliott Hill defended the brand during recent earnings calls. “Converse is a beloved brand that serves a distinct consumer through their connection to creative culture, music, and youth,” Hill said. “Converse will remain an important part of the NIKE, Inc. family.”
The company implemented layoffs and restructuring this quarter under CEO Aaron Cain, who took over in July 2025. Cain replaced Jared Carver after consecutive quarters of double-digit revenue declines.
Authentic Brands Group has expressed longstanding interest in purchasing Converse if Nike decides to sell, according to Bloomberg. The company owns Reebok and Champion and has grown Reebok’s annual sales from $1.6 billion in 2020 to $5 billion in 2024.
Industry experts cite brand stagnation as a core problem. “It didn’t disappear, but it stopped feeling new,” said fashion publicist Tracy Lamourie. “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.”
Converse faces intense competition from Vans, which offers more design variety and better cushioning technology. While heritage brands like Asics and New Balance capitalized on sneaker culture trends, Converse relied heavily on its iconic Chuck Taylor silhouette without significant innovation.
The brand contributes just 2.5% of Nike’s total revenue but its prolonged decline raises questions about its long-term strategic value. Nike has not engaged in formal sale discussions, though the company’s commitment to turning around the 117-year-old brand faces mounting pressure as losses continue.
Read more: How did Nike’s embattled heritage brand Converse reach a 15-year revenue low?
