Converse sale speculation grows as Nike’s costs mount
Nike has disclosed approximately $300 million in pre-tax charges for organizational restructuring in the nine months ending February 28. The costs — primarily employee severance — will be recognized mostly in Q3 FY2026, and include nearly 800 job cuts from consolidating U.S. distribution operations and undisclosed layoffs at Converse. The filing has intensified speculation that Nike may sell Converse, with BNP Paribas analyst Laurent Vasilescu citing language around “exit or disposal activities.” Converse revenue fell 28% YoY in Q1 and 31% in Q2 to $300 million, with EBIT turning negative. Nike reports Q3 FY2026 earnings on March 31.
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