NKE · 10-K · 2026A · Full report

Converse Revenue Decline and Reset

NIKE, Inc. · 2026-07-15 · Importance 66 · Surprise 74 · No source text

Converse revenues declined to $1,174 million in fiscal 2026 from $1,692 million in fiscal 2025, a reported decrease of 31% and a currency‑neutral decrease of 32% year-over-year; unit sales decreased 31% and ASP reductions (~1 percentage point) contributed to the decline. Wholesale and direct-to-consumer revenues each decreased roughly 33% on a currency‑neutral basis, and reported EBIT fell sharply (reported as a 93% decrease) driven by lower revenues and brand and marketplace reset costs including higher inventory obsolescence reserves and employee severance charges. Converse's gross margin contracted ~490 basis points due to lower ASPs and reset-related costs, and management indicates the Converse reset will take more time and negatively impact results into fiscal 2027. The decline is across territories and reflects both demand deterioration and strategic repositioning of the brand.

Key facts

• Converse reported EBIT decreased 93% in fiscal 2026 compared to fiscal 2025, resulting in Converse EBIT of $(93) million in fiscal 2026. source
• Converse revenues were $1,174 million in fiscal 2026 compared to $1,692 million in fiscal 2025, a 31% reported decline and 32% currency-neutral decline. source
• Converse unit sales decreased 31% and lower ASP reduced Converse revenues by approximately 1 percentage point in fiscal 2026. source
• Converse gross margin contracted 490 basis points to 43.8% in fiscal 2026 from 48.7% in fiscal 2025. source

Impact estimates