Summary
- Converse reported consecutive quarterly revenue drops of 27%, 30%, and 35% during the 2026 fiscal year
- ABG currently manages a global portfolio with approximately $38 billion in annual retail sales following its acquisition of a majority stake in Guess
Authentic Brands Group (ABG) has reportedly expressed interest in acquiring Converse from Nike as the sneaker brand faces its steepest sales decline in 15 years.
While Nike CEO Elliott Hill focuses on taking “meaningful actions to improve the health and quality” of the broader business, industry sources suggest ABG is monitoring the situation for a potential deal. Converse’s revenue plummeted 35% to $264 million in the third quarter of fiscal 2026, continuing a downward trend across all global territories.
ABG has a proven history of acquiring heritage brands under pressure, including its recent majority stake in Guess and previous acquisitions of Reebok and Champion. Although no formal discussions have taken place, the persistent underperformance of Converse has made it a central focus for market speculation regarding Nike’s portfolio optimization.
