ABG’s informal and longstanding interest in Converse — reported by Bloomberg via unnamed sources – arrives as the brand posts its worst sustained performance under Nike ownership, with revenues down 30 percent from peak and EBIT more than halved in a single year.
Authentic Brands Group (ABG) has expressed interest in buying Converse should it come up for sale, “people familiar with the matter” have told Bloomberg, which goes on to say that ABG’s interest is of long standing but so far unofficial.
Revenues at the brand have dropped over the past two years from an all-time high of $2.43 billion to $1.70 billion – a difference of $730 million. The year-on-year drop to fiscal 2025 was of 19 percent, from $2.1 to $1.7 billion. The preceding year’s drop was of 14 percent.
About a quarter-century ago Converse was taking on debt every year and entering into receivership. It filed for bankruptcy in January 2001, with revenues of about $100 million, and was purchased by Footwear Acquisitions. Revenues increased to $205 million and stayed there until Nike acquired the brand – in 2003, for $305 million plus the assumption of certain working capital liabilities. What ensued was a steady climb until 2015, when revenues hit $1.98 billion. Things picked up again after 2020 to the aforementioned peak of 2023.
Brand financial analysis
Converse revenue, 1998–2025
Five years before Nike's September 2003 acquisition through fiscal year 2025 (Nike fiscal year ends 31 May)
Revenue at acquisition
$205M
Sept 2003
Nike purchase price
$305M
1.5× revenue multiple
All-time revenue peak
$2.43B
FY2023 · 12× acquisition
FY2025 revenue
$1.70B
−30% from peak
Sources: Nike Inc. SEC filings (Form 10-K, Form 8-K, Form 10-Q), Nike Inc. investor press releases, Converse Inc. pre-bankruptcy SEC filings. Pre-acquisition years 2000–2001 and post-acquisition years 2004–2006, 2008, 2010–2013 and 2017–2020 are estimated from disclosed year-on-year growth rates. Nike fiscal year ends 31 May. Compiled by SGI Europe.
In its latest earnings report, for Q3 2026, Nike posts Converse revenues of $264 million, down 35 percent on a reported and 37 percent on a currency-neutral basis, and writes of “declines across all territories.”
Converse’s revenues for fiscal 2025 (ended May 31) amounted to 3.65 percent of the total for Nike Inc. The annual report tells of a halving of Converse EBIT (down 49%, from $474m to $240m).
