Nike Faces Mounting Pressure as Converse Sales Fall 28 Percent

Nike is confronting a widening business downturn as Converse sales plunge and other major operations weaken, raising questions about the future of the iconic sneaker brand. According to Fortune on October 20, 2026, Converse revenue fell 28 percent in the latest quarter, complicating CEO Elliott Hill's efforts to restore growth and prompting analysts to question whether Nike should retain the 118-year-old footwear business.

Although Converse represents just 2.5 percent of Nike's sales, the brand accounted for 20 percent of the company's overall sales decline in the most recent quarter, Fortune reported. The results highlight how a relatively small business has become a significant obstacle to Nike's recovery.

Retail Dive reported on October 19 that Converse, Jordan Brand, Nike's sportswear business and Greater China were all experiencing declines. The latest results follow earlier efforts to revive growth through product innovation, closer relationships with wholesale retailers and changes to Nike's distribution strategy.

Hill acknowledged the scale of the challenge during Nike's latest earnings call, identifying three major areas that require substantial improvement.

"Taken together, Sportswear, Jordan Brand and Greater China represent significant work ahead, but we know what healthy looks like and we're taking deliberate actions to get there," said Elliott Hill, Nike's CEO.

Nike's difficulties extend beyond Converse. Its sportswear business, which includes several major footwear franchises, declined by a low double-digit percentage in the latest quarter and generated slightly less than half of the company's revenue during that period, according to Retail Dive.

Hill attributed the weakness to a combination of planned business decisions, underperforming products and broader market pressures.

"The decline reflected a combination of deliberate actions, product underperformance and broader marketplace pressure," Hill said.

One significant change involved reducing Dunk revenue by almost 50 percent, removing $200 million from the division's first-quarter revenue. Some older footwear products also performed below expectations, while efforts to clear excess inventory affected future orders from wholesale partners.

Despite the weakness, Nike reported some positive results. Its Studio Fleece collection was the company's best-performing apparel launch during the quarter, while the Air Force 1 supported stable sales at full price. Other footwear franchises also recorded double-digit growth, Retail Dive reported.

Hill said the company needs to strengthen its creative approach to lifestyle products as consumer traffic remains weak.

"Overall, there's a lack of energy in the lifestyle space right now, which is impacting traffic. Yes, the consumer is cautious. But as the leader in the industry, it's on us to bring more creativity to sportswear," Hill said.

Greater China presents another major challenge. Nike's regional revenue declined 22 percent at the start of fiscal 2027, following declines in fiscal 2025 and fiscal 2026. The company has appointed longtime executive Cathy Sparks to oversee the region and plans to simplify its fragmented online distribution network.

Beginning in January, Nike plans to sell products through its own app and website in China, alongside flagship storefronts on Tmall, JD.com and Douyin. The company is also investing in products designed for Chinese consumers, with its first locally developed collection scheduled to launch in October 2026.

"It will be a brick-and-mortar only launch purposely," Hill said of the initial China-specific collection.

"And then we will continue to deliver products over time, products and assortments that are locally designed, developed and even manufactured in China," Hill said.

Nike's current difficulties contrast with Converse's earlier revival under its ownership. According to an October 17 analysis published by Nettle, Converse filed for Chapter 11 bankruptcy protection in July 2001, shutting a factory in North Andover, Massachusetts, and leaving roughly 1,100 workers without jobs.

Nike acquired Converse in 2003 for approximately $305 million. Within a decade, Converse was reportedly generating more than $1 billion in annual revenue, supported by the Chuck Taylor All Star's popularity as a lifestyle sneaker rather than a performance basketball shoe.

The turnaround relied heavily on distribution and manufacturing changes. Nike consolidated production, shifted manufacturing largely to contract factories in Asia and reduced Converse's exposure to lower-tier retail channels, allowing the company to position its canvas sneakers as fashion products.

Converse's present decline therefore threatens a business that previously became a substantial source of revenue after its acquisition. With Nike also confronting weakness in Jordan Brand, sportswear and China, Hill's restructuring efforts face challenges across several of the company's largest operations.