NKE · 10-Q · 2026Q3 · Full report

Converse Revenue Decline and Reset

NIKE, Inc. · 2026-10-02 · Importance 55 · Surprise 66

Converse revenue decreased 28% year over year on a currency-neutral basis, with declines across all territories. Unit sales fell 34%, partially offset by a 6-percentage-point benefit from higher average selling price related to product mix and lower discounts. Wholesale revenue declined 25% and direct-to-consumer revenue declined 34% on a currency-neutral basis. EBIT decreased 36% as gross margin contracted 210 basis points from higher product costs and warehousing and logistics costs, despite lower demand creation and operating overhead expenses.

Key facts

• Converse revenues decreased 28% on a currency-neutral basis driven by declines in all territories; unit sales decreased 34% while higher ASP contributed approximately 6 percentage points of revenue growth. source
• Converse reported EBIT decreased 36% and Converse gross margin contracted 210 basis points to 45.2% from 47.3%, primarily due to higher product costs and higher warehousing and logistics costs. source