Dive Brief:
- Converse CEO Jared Carver is leaving that role, according to a Nike internal memo sent to employees Thursday. In his place, vice president and general manager of Nike Global Men’s business, Aaron Cain, will step into the position.
- Cain is a 21-year Nike veteran with “deep global and geography leadership experience,” per the memo. That includes leading the sportswear business across a variety of geographies prior to his role overseeing the men’s business globally.
- Carver will work with Cain through the end of July to ensure a smooth transition. CEO Elliott Hill said in the memo that Carver’s departure was a joint decision and “the time is right for the next chapter of the brand’s evolution.”
Dive Insight:
The latest step in Hill’s overhaul at Nike is a new CEO for Converse.
Cain takes on the role just weeks after Hill boasted on an earnings call that he had made changes to 11 of his 15 direct reports. Like many of Hill’s other leadership changes recently, Cain is a longtime Nike veteran, replacing another longtime Nike veteran. Carver had only been leading Converse for two years, but he spent 15 years at the company more broadly.
“Jared’s experience, team-first mentality and deep knowledge of Converse is what made him an exemplary leader,” Hill said in the memo of Carver’s departure. “He has built a legacy that has set the course for the next phase of growth and opportunity for the brand.”
The change at Converse comes shortly after Nike announced it would realign its teams around key sports versus categories like men’s, women’s and kids. The goal of that effort is to focus employees on designing for the athlete they serve, Hill said on an earnings call last month.
“Converse plays a critical role in both our sport offense and multi-brand portfolio,” the memo reads. “I appreciate the hard work and commitment of the entire Converse team as we move forward and reposition Nike, Inc. for the future.”
Nike is deep in turnaround mode, with full-year sales falling 10% in its most recent fiscal year and fourth-quarter revenues likewise down double digits. The retailer is tackling a variety of challenges at once, including winning back wholesale partners that were shunned during its DTC-first strategy and rightsizing franchises like Dunk, Air Jordan and Air Force 1.
While it won’t be an overnight fix, Needham analyst Tom Nikic said in emailed comments Thursday that the pullback in Nike’s classic shoe styles “was likely as bad as it will get” in Q4.
“These styles haven’t yet gotten back to being the instant sellouts they once were, but with less supply in the marketplace, we’re seeing fewer ‘bricks’ (i.e. slow-selling styles),” Nikic said.
Nike’s turnaround isn’t just important to its own financials; the retailer’s success could have serious implications for Dick’s recent acquisition of Foot Locker.