Converse was the sneaker of a century — then Nike restructured it out of its decline

Converse, the 118-year-old sneaker brand that defined generations of basketball and street style, was reorganized by owner Nike in February 2026 amid a steep sales decline. CEO Aaron Cain, a 21-year Nike veteran who took the Converse helm in mid-2025, sent a memo on February 9 instructing staff to work from home as the company implemented job cuts and team restructuring under Nike's broader 'Win Now' turnaround plan.

The numbers were stark. Converse revenues fell 19% in fiscal 2025 to $1.7 billion. Quarterly declines accelerated: Q1 was down 28%, and Q2 revenue of $300 million represented a 30% drop from the prior year. EBIT turned negative in Q2. Analysts at BNP Paribas noted the brand was in 'precarious' health and suggested Nike might eventually sell it. The job cuts at Converse followed a separate Nike action that eliminated approximately 775 positions at U.S. distribution centers.

Nike's 'Win Now' strategy, outlined on the Q3 earnings call, aimed to streamline operations, sharpen the supply chain, and accelerate automation. But for Converse, a brand that had ridden the 2010s streetwear wave through collaborations with Off-White, Tyler the Creator, and Golf Wang, the restructuring signaled something deeper: the canvas Chuck Taylor and One Star silhouettes had lost relevance in a market dominated by technical running shoes and chunky dad sneakers.

The restructuring came amid broader turmoil at Nike. CEO Elliott Hill, who had replaced John Donahoe in late 2024, was executing a turnaround after Nike's DTC strategy backfire cost $5B in lost wholesale revenue. Nike's total revenue fell 10% to $46.3 billion in fiscal 2025, and the stock had lost 65% from its 2021 peak.

Nike restructured Converse under 'Win Now', cutting jobs and teams, because nostalgia and collabs could not replace a product the next generation wanted to wear.

Converse's core silhouettes — canvas Chuck Taylors and One Stars — lost ground as streetwear shifted to technical running sneakers (On, Hoka, New Balance) and chunky dad shoes

Converse revenue fell 19% in one year, with Q2 alone dropping 30% to $300M — a pace of decline that left Nike with no option but restructuring

Nike's own financial crisis — total revenue down 10%, stock off 65% — meant the parent could not shield a struggling subsidiary from deep cuts

The brand over-indexed on nostalgia and collaborations without evolving its core product; when the collab cycle cooled, there was no updated foundation to fall back on

A 118-year-old brand can lose its footing when streetwear taste shifts. Nostalgia and collaborations buy time, but they do not replace a product the next generation wants to wear.