Converse Revenue Drops 28 Percent in Fiscal Q1

The footwear brand saw a significant decline in sales as it continues a strategic reset of its marketplace operations.

Updated on Oct. 20, 2026 in Retail

Converse Revenue Drops 28 Percent in Fiscal Q1

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Converse reported that its revenue fell 28 percent to $263 million for the quarter ended August 31, 2026. This decline represented over 20 percent of the total revenue decrease seen by parent company Nike during the same period.

Why it matters

The downturn highlights the impact of an ongoing brand and marketplace reset, which is expected to continue affecting the company's financial performance throughout fiscal 2027.

Converse unit sales fell 34 percent, while its earnings before interest and taxes dropped 36 percent to $25 million. These declines were partially offset by higher average selling prices, which mitigated the revenue loss by 6 percentage points.

The players

Converse

An American shoe company known for its Chuck Taylor All Star line that operates as a subsidiary of Nike.

Nike

A multinational corporation that engages in the design, development, manufacturing, and worldwide marketing of footwear and apparel.

The details

The brand faced broad-based weakness, with wholesale revenue falling 25 percent and direct-to-consumer revenue dropping 34 percent on a currency-neutral basis. The results reflect the broader challenges faced by the business as it works to restructure its market presence.

Fiscal 2023 saw Converse reach $2.427 billion in annual revenue.
Fiscal 2026 annual revenue for Converse totaled $1.174 billion.
The Nike fiscal 2027 first quarter concluded on August 31, 2026.
The company conducted an earnings call to discuss financial results on October 1, 2026.

Market Landscape

The brand is undergoing a significant contraction, with current performance showing a sharp decline from the $2.427 billion in annual revenue recorded during fiscal 2023. This restructuring effort places the subsidiary in a challenging position as it attempts to stabilize its market share against rising footwear competitors.

The ongoing brand reset may lead to changes in product availability or shifts in the retail channels where customers typically purchase Converse footwear. Shoppers should anticipate evolving inventory as the company focuses on its strategic turnaround throughout the fiscal year.

The takeaway

Investors and consumers should monitor the brand's restructuring progress throughout the 2027 fiscal year. Success in the marketplace reset will be critical for the company to reverse its recent double-digit sales decline.