Nike warned that Converse staff will be let go after a nearly 20% drop on their revenue in the most recent quarter.
👉 Background: Nike is the world's biggest sneaker brand with arguably the most iconic logo in the world. Although known for the Nike brand, the company also owns Converse, Air Jordans, Cole Haan, Hurley, and others.
👉 What happened: Over the past 3 months, Nike’s been going hard on cost-cutting with a plan to cut $2 billion worth of costs over the next three years, including 2% of its workforce. Now, Nike warned that Converse staff will be let go after disappointing results.
👉 What else: Converse has struggled to move onto new trends that appeal to younger generations. In fact, Converse’s revenue dropped nearly 20% in the most recent quarter.
💡While the slow global economy has impacted all shoemakers, not all of them are struggling equally.
💡In the past, consumers would generally wear one of two brands for sport - Nike or Adidas. But now, running shoe brands like On and Hoka have been been growing rapidly, while the two titans (Nike and Adidas) have seen declines in sales.
💡So while consumers are more conscious with their spending, shoe manufacturers need to work even harder to tempt them. Your move, Nike.
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