Nike (Photo : Reuters)
According to Fool, Nike, despite its missed growth expectations, climbed 4 percent on top of the already established 7 percent quarterly revenue. The athletic apparel and footwear name dedicates its gratitude to "Chuck Taylor," by Converse, its subsidiary.
Converse, which was acquired by Nike in July 2003 for $305 million, achieved sales that grew to 28 percent more than the 33 percent in the last quarter, amounting revenue to $538 million, CNN wrote.
From being a $205 million worth company before the acquisition, 12 years after, Converse's recent impressive performance on revenue is attributed to the fact that the brand follows a better distribution pattern and marketing plan in the Europe and the United States, more than all other parts of the globe, Nike's chief financial officer Don Blair said.
In October, Nike decided to hunt-down "Chuck Taylor" look-alikes. Converse filed 22 trademark infringement lawsuits against more than 30 companies for their illegal utilization of the pair of shoes' core design elements. While Nike reportedly tried to avoid court deals, the brand decided to push through the decision when copy-cats kept on emerging in the market.
An update to the copyright infringements cases has revealed that the subsidiary brand Converse has voluntarily dismissed a couple of cases after peaceful agreements with defendants including Ralph Lauren, Zulily, Tory Burch, and H&M.
With a number of competitors neutralized effectively and Nike is piling-up cash into its infrastructure, direct-to-consumer channels, and infrastructure, Converse has appeared to play an increasingly vital role in determining Nike and its shareholder's fortune in the years to come, CNN commented.
