Nike’s turnaround is stalling, and its Converse brand is a big reason why
Source: Fortune ·
Sales at the 118-year-old sneaker brand fell 28% last quarter, and analysts are wondering whether CEO Elliott Hill will keep it.
From the source
Converse makes up just 2.5% of Nike’s sales. Last quarter, it accounted for 20% of the company’s sales decline. Two years into Elliott Hill’s tenure as Nike’s CEO, the 118-year-old maker of the Chuck Taylor is a big drag on a comeback that isn’t coming together, with Converse sales down 28% in the most recent quarter and analysts openly wondering whether Nike will keep it in its portfolio. Converse’s Chuck Taylor high-tops have gone in and out of style over the decades, but the shoe’s vulcanized rubber sole and heavy, stiff profile are out of step with trends right now, and the brand is enduring an unusually long, deep cold streak. Too dependent on one style Nike bought Converse for $305 million in 2003, seeing enormous potential to rehabilitate an iconic brand. Converse had dominated athletic footwear for decades, but by the 1990s, it was reeling, and it ultimately filed for bankruptcy protection in 2001. Converse started out as a rubber shoe manufacturer in 1908 and early on made…