How did Converse perform in Q4 2023?

Converse's performance in Q4 2023 was lackluster, as evidenced by Nike's overall results and specific segment performance:

1. Soft Quarter in North America: Nike's revenue fell 4% in North America, which significantly impacted the overall revenue total. This decline was likely a result of softness in both North America and Europe, as indicated by the 11% decline in Converse sales during the quarter.
2. Decline in Footwear Revenue: Total footwear revenue rose only 1% year-over-year to $8.61 billion, missing the consensus expectation of $8.69 billion. This was primarily driven by a 4% revenue fall in North America, while revenue in Greater China and the Asia Pacific & Latin America segment showed positive growth.
3. Impact on Gross Margin: Despite a 17% increase in equipment revenue and a 6% rise in Nike Direct sales, the overall revenue performance dragged down the gross margin. This suggests that Converse's performance contributed to a softer gross margin, which was partially offset by strategic pricing actions and lower ocean freight rates.

In conclusion, Converse's performance in Q4 2023 was underwhelming, contributing to Nike's mixed financial results. The brand faced challenges in both North America and Europe, resulting in a decline in footwear revenue and a softer gross margin.