Nike Restructuring Pushes Converse Job Cuts Amid Persistent Market Headwinds

Nike is trimming personnel at Converse, its subsidiary, as part of a wide-reaching overhaul designed to counter ongoing difficulties in the marketplace.

Turnaround efforts have yet to pick up momentum

Layoffs at Converse represent the newest step in Nike’s attempt to tighten its operating model. The company is contending with stiff competitive pressure and needs to reenergize product innovation to regain consumer interest. The strategy also includes recalibrating relationships with retailers after a period of heavy emphasis on online sales.

Stock performance mirrors the challenges

Nike’s shares have fallen behind the broader market, with the stock lagging the S&P 500 and trailing both peers and the wider consumer staples sector for several months.

Forecasts and financials in focus

For the upcoming quarter, analysts expect earnings per share to drop about 40.7% year over year. Revenue is forecast to be nearly flat, rising by around 0.2%.

For full-year 2026, consensus anticipates a modest revenue increase of 1.1%, while earnings per share are seen down by 27.3%. Management had already signaled a slight revenue decline for the third quarter, in the low single-digit percentage range.

The numbers highlight how difficult the path out of the downturn remains. Nike must prove that its initiated actions will translate into stronger performance, and investors will be watching closely to see if the trend reverses in the upcoming quarterly results.

@ boerse-global.de | US6541061031 NIKE