Converse Sales Fall 28% as Brand Drives One-Fifth of Nike's Revenue Drop

Converse accounted for about one-fifth of Nike's year-over-year revenue decline in its fiscal 2027 first quarter, as a sharp drop in unit sales outweighed higher selling prices at the brand.

Converse revenue fell 28% to $263 million in the three months ended Aug. 31, 2026, from $366 million a year earlier. Unit sales dropped 34%. Higher average selling prices offset about six percentage points of the revenue decline.

Nike's quarterly revenue decreased $507 million, from $11.720 billion to $11.213 billion. Converse's $103 million drop represented 20.3% of that decrease, although the brand generated just 2.35% of Nike's revenue in the quarter.

The decline reached every Converse territory. Wholesale revenue fell 25%, while direct-to-consumer revenue dropped 34%, both on a currency-neutral basis. The decreases across both channels show that the quarter's weakness extended beyond a single way of selling the brand's products.

Converse earnings before interest and taxes fell 36% to $25 million from $39 million a year earlier. Its annual revenue was $1.174 billion in fiscal 2026, compared with $2.427 billion in fiscal 2023. The fiscal 2026 figure was less than half the level three years earlier.

On an Oct. 1 earnings call, Nike Chief Financial Officer David Denton described the company's focus as getting “our Jordan and Converse brands back to financial health.”

Converse is resetting its brand and marketplace. Those actions are expected to continue throughout fiscal 2027 and weigh on revenue and profitability during that period.