Nike‘s challenged Converse division has a new CEO.
Aaron Cain, a 21-year Nike Inc. veteran, is taking over the top job at Converse. He succeeds Jared Carver, who is leaving the brand after two years as CEO.
Bloomberg, which first reported the news, said the two executives will work together through the end of July as part of the transition period.
Nike last month posted a 86 percent drop in fourth quarter net income to $211 million from $1.5 billion a year ago. Overall Swoosh sales fell 12 percent in the quarter to $11.1 billion from $12.6 billion. Converse, meanwhile, faced a more pronounced sales drop, declining 19 percent to $1.7 billion.
“Moving forward, we expect our business to improve as a result of the progress we’re making through our Win Now actions,” president and CEO Elliott Hill said in a statement. Hill, who served in several leadership roles before retiring from Nike in 2020, returned to the Swoosh firm last October as CEO.
Prior to the earnings report, Wall Street analysts were expecting that the sports apparel and shoe giant would likely need more time to effect a turnaround.
Some of the more recent changes — a flurry of executive moves believed to be Hill’s effort to “accelerate” Nike’s turnaround progress — include Tony Bignell’s promotion to chief innovation officer, succeeding John Hoke, a 33-year Nike veteran who is retiring. In May, other promotions include Amy Montagne to Nike brand president and Phil McCartney to chief innovation, design and product officer. At the same time, the company disclosed that Heidi O’Neill, president of consumer, product and brand, will be retiring. And Tom Clarke, who was strategic advisor to the CEO and members of the senior leadership team, took on the new role of chief growth initiatives officer. Earlier in the year, Nike veteran Jennifer Hartley, who served as vice president of strategic enterprise capabilities, was named chief strategy officer.
The Converse brand in May announced the return of the brand’s collaboration with Isabel Marant. In general, the brand has been somewhat of an underachiever in terms of its revenue contribution to Nike over the years. That could change under new leadership as Cain takes over the top reins at the brand.
Nike did not respond to a request for comment by press time.