The Kicks You Wear: The Future of Converse
Nike CEO Elliott Hill highlighted Converse’s turnaround as one of Nike’s must-dos for 2026, but would the company be better off passing the brand’s problems onto a new owner?
Good morning, friends! Happy New Year! Welcome back to The Kicks You Wear. Thanks so much for reading today. I appreciate you giving me a bit of your time.
I hope you all had a great holiday season and took a much-deserved break! Glad to be back to hit here with you all. I have a New Year’s resolution: I will do my absolute best not to buy more than 10 sneakers this year.
I will keep you all abreast on how quickly I break that promise.
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Quick Hits:
In case you missed it, Nike released its first sneaker commercial for Caitlin Clark’s upcoming signature line. It’s been a long time coming. Solid debut, in my opinion.
Tim Cook is a believer in the Swoosh. Apple’s CEO purchased $3 million in Nike stock over the holiday season. Merry Christmas to Nike.
Here’s a big primer from BoF on the 10 themes that will define fashion’s agenda for 2026. This is a must-read today if you’ve got some time.
Now, let’s dive in.
What’s Up With Converse?
CEO Elliott Hill made it clear that the company’s goal is to turn Converse’s business around as it moves forward under the Nike umbrella. But a dive into the company’s latest 10-Q filing has me wondering how, exactly, the brand will go about doing that.
What’s new: Nike made its latest 10-Q filing to the Securities and Exchange Commission public on its website over the holiday break on Dec. 30. This is a mandatory filing US public companies must submit to the SEC that details their financial performance and risks in each quarter.
Nike’s filing for Converse showed exactly what Hill detailed to investors in the company’s earnings call on Dec. 18. The brand is still facing major headwinds with sales down big in every category. But there was a number that genuinely shocked me when I saw it.
The big deal: Demand creation for Converse dipped in the second quarter by 44 percent, year-to-year, to $24 million down from $43 million in the same period in 2024.
Why this matters: Think of demand creation as another term for marketing and promotion. It’s what Nike does better than any other brand in the world — both in and outside of the sportswear industry. Lots of companies make great products, but you’d be hard-pressed to find one that markets them as well as Nike.
Seeing a 44 percent decrease in a marketing budget of any kind feels so unlike this company. It feels especially strange here, considering that Converse is a brand Nike seems so keen on turning around. That’s exactly why I’m struggling to wrap my head around it.
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