Parent Nike provides more details about Converse’s annual results for the 12 months ended May 31 in its annual report filed last week. FY revenues for the All-Star brand rose by 3 percent to nearly $2.43 billion. Annual Ebit at Converse was $676 million versus $669 million in FY22. Currency-neutral brand sales increased by 8 percent last year due to revenue growth in North America, Western Europe and licensee markets that was partially offset by declines in Asia.
Direct-to-consumer sales jumped by 8 percent on a currency-neutral basis ad 5 percent on a reported basis to $974 million. Sales to wholesale customers inched up by 1 percent to nearly $1.3 billion from $1.29 billion. Combined unit sales from both the DTC and wholesale channels increased by 1 percent while the average selling price (ASP) rose by 6 percent, driven by strategic pricing actions in Western Europe and North America.
Aside from footwear, Converse realized a 13 percent year-over-year drop in apparel sales in FY23 to $90 million from $103 million and an 8 percent growth in equipment sales to $154 million. Third-party licensees who pay royalties to Converse for the use of its registered trademarks and intellectual property rights generated 25 percent revenue growth in the FY to $154 million. It should be noted that Nike does not own Converse trademarks in Japan, so it does not produce revenue in that market.
