Converse Financial Performance and Contribution to Nike

Converse Financial Performance and Contribution to Nike

Converse Financial Performance and Contribution to Nike-As one of the biggest companies in Apparel Industries, Nike Inc has some of the popular brand that many people have known about its brand. One of the brands is Converse that has contributed to Nike Inc financial performance from time to time.  Historically, Nike acquired converse in 2003 and still become one of the flagship brands of Nike.

The History and Business Development of Nike Inc

Historically, Nike was founded on January 25, 1964, with initial Name Blue Ribbon Sports (BRS) by Phil Knight and Bill Bowerman. In the beginning, Blue Ribbon Sports was the distributor of Japanese Shoemaker company, namely Onitsuka Tiger (Asics). In 1970s, BRS decided to separate with Onitsuka Tiger and want to produce its products independently. Finally, they launched the own brands “Nike” with Swoosh logo design by Carolyn Davidson.

Converse Financial Performance and Contribution to Nike- Converse and Nike

Along with business development, Nike has sold many products in the market and their popularity has getting bigger. In 2003, Nike sacrificed US$309 million to acquire Converse. To strengthen its shoe industries, Nike also acquire Cole Haan, Umbro, and Hurley International but Later All of them was sold again to other company. To Date, Nike’ products offerings focused on Men’s, Women’s, and Kids.’ Furthermore, beside Nike Brand, this company has produced and distributed Jordan Brand and Converse.

To Support their marketing and distribution all of products, Nike build some retail stores. Overall, Nike has U.S. Retail Stores around 344 office and Non-U.S. Retail Stores around 702 offices. Until 2021, along with business development, based on the business performance, Nike is the largest seller of athletic footwear and apparel in the world. In the apparel and footwear business, Nike also has the competitors, namely Adidas, ASICS, Li Ning, lululemon athletica, Puma, Under Armour and V.F. Corporation, among others.

The Assets, Liabilities, and Equities of Nike Inc

YearsAssets Liabilities Equities
(In millions)(In millions)(In millions)
2022$ 40,321 $ 25,040$ 15,281
2021$ 37,740$ 24,973$ 12,767
2020$ 31,342 $ 23,287$ 8,055
2019$ 23,717$ 14,677$ 9,040
2018$ 22,536 $ 12,724$ 9,812
2017$ 23,259$ 10,852$ 12,407
Source: Nike Annual Report, 2018-2022

Financially, after more than 50 years in doing the business. Nike has become the global company with billion of assets and equities. Based on the balance sheet of the company in 2022, Nike has assets around USD 40 billion and it has increased if it was compared to Nike’s Assets in 2017 with value around USD 23 million. The Equities also has increased from USD 12 billion in 2017 and it had become USD 15 billion in 2022.

The Revenue and Net Income of Nike Inc

YearsTotal Nike Revenue Net Income
(In millions)(In millions)
2022$ 46,710 $ 6,046
2021$ 44,538$ 5,727
2020$ 37,403 $ 2,539
2019$ 39,117$ 4,029
2018$ 36,397 $ 1,933
2017$ 34,350$ 4,240
Source: Nike Annual Report, 2018-2022

Based on the business performance and sustainability, Nike Inc also generated positive net income from time to time. Based on the data of income statement, Annual Report from 2017 to 2022, Nike consistently gaining the net income. The revenue of Nike has increased from 2017 with value around $ 34,350 million and in 2022, it had become 46,710. Furthermore, the net income also relatively stable. The net income of Nike in 2017, 2018,2019,2020,2021, and 2022 was $ 4,240 billion, $ 1,933 billion, $ 4,029 billion, $ 2,539 billion, $ 5,727 billion, and $ 6,046 billion, respectively.

Converse Financial Performance and Contribution into Nike

YearsConverse RevenueTotal Nike RevenuePercentage of Contributions
(In millions)(In millions)(%)
2022$ 2,346$ 46,710 5%
2021$ 2,205$ 44,5385%
2020$ 1,846$ 37,403 5%
2019$ 1,906$ 39,1175%
2018$ 1,886$ 36,397 5%
2017$ 2,042$ 34,3506%
Source: Nike Annual Report, 2018-2022

Historically, the journey of Converse began when the founder of Converse, namely Marquis Mills Converse opened Converse Rubber Shoe Company on February 1908 at Malden, Massachusetts. In the World War II era, Converse produced and manufactured rubberized footwear, outerwear, and protective suits for the military. The company restate production of athletic footwear after the war’s end. After some dynamic with up and down journey in its business, until in July 2003, Nike paid US$309 million to acquire Converse. To Date, Commonly, Converse products consist of casual sneakers, apparel and accessories with some trademarks, namely Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell. Today, Converse is sold globally in more than 160 countries,

Converse Financial Performance and Contribution to Nike- Converse shoes

As a group of Nike business, Converse has contributed financially into Nike. Financially, Total revenue of Converse in 2017, 2018, 2019, 2020, 2021, and 2022 is $ 2,042 million, $ 1,886 million, $ 1,906 million, $ 1,846 million, $ 2,205 million, and $ 2,346 million, respectively. Based financial contribution into Nike, Converse contributed 5% – 6% into Total Nike Revenue.

To increase and retain the brand awareness of its products, Converse has some partnership with some Basketball Athletes as brand ambassadors. Some of them are Rudy Gay, P. J. Tucker, DeAndre’ Bembry, De’Anthony Melton, Nickeil Alexander-Walker, Immanuel Quickley, Deividas Sirvydis, Jordan Clarkson, Josh Richardson, David Duke Jr., and Brandon Williams. In the past, Converse ever had a partnership with Lary Bird and Magic Johnson to promote the “the Weapon”, one of the Converse trademarks.

Bibliography Converse Financial Performance and Contribution to Nike

Nike Inc. 2023. Annual Report 2018-2022. Accessed via  on April 16th, 2023.

Wikipedia. 2023. Converse (Lifestyle wear). Accessed via on April 4th, 2023.

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