SBD/8/Sponsorships Advertising Marketing

CONVERSE FIRST QUARTER SALES DOWN 30%; EARNINGS DROP 75%

          Converse announced that its net sales were down 30% in
     its first quarter ended April 4, 1998.  Sales were $95.2M,
     compared to $136M for the same period in '97, a drop of 30%. 
     Earnings were $3.1M compared to $12.3M over the same period
     last year, down 75%.  The company reported a net loss of
     $1.2M or $0.07 per share compared to net earnings of $12.7M
     or $0.71 per share in 1Q '97.  The sales drop was attributed
     to decreases of 50.3%, 51.5% and 34.3% for basketball,
     children's and cross training categories, respectively.  U.S.
     sales decreased 40% while international sales dropped 10%. 
     Converse Chair & CEO Glenn Rupp: "We have seen a significant
     slowdown in the athletic footwear market.  We anticipate that
     the industry will continue to be sluggish throughout 1998.
     ... We characterize 1998 as a year to 'batten down the
     hatches,' continue to improve the product offerings and be in
     a position to respond aggressively when the industry
     rebounds" (Converse).

Return to top

Related Topics:

Converse

Video Powered By - Castfire CMS Powered By - Sitecore

Report a Bug