Nike Replaces Converse Chief To Revive Iconic Canvas Sneaker Brand

Nike (NKE) is replacing the chief executive of its Converse subsidiary with a company veteran, hoping to revive the brand, which was once hugely popular with young consumers.

Nike CEO Elliott Hill said in an internal memo that Aaron Cain, a vice president and general manager of Nike's global men's business, will be the next CEO of Converse, replacing Jared Carver, according to a Bloomberg News report.

Cain has been at Nike for over two decades and has held roles in the company's sportswear divisions in North America, Europe, and Asia.

Nike acquired Converse in a distress sale in 2003, and soon after, its canvas sneakers surged in popularity among teens and young adults. In recent years, however, sales have declined.

"The time is right for the next chapter of the (Converse) brand's evolution," and the executive change is part of an effort to "create greater distinction and dimension for each of our brands around sport," Hill said in the memo.

Hill, who returned as Nike CEO in October, is leading a sweeping restructuring effort after years of market share erosion to emerging rivals. He has trimmed the Nike's workforce, resumed direct sales on Amazon, and pledged to roll out innovative products aimed at re-engaging Nike's core, sports-focused consumers.

On Stocktwits, the retail sentiment for the company remained 'bearish,' unchanged from a week ago. NKE shares are down 2% year-to-date.

In a sign of revival, Nike posted better-than-expected fourth-quarter results and an upbeat forecast last month, leading to share gains.

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