Nike's Converse Pauses Marketing After Uproar Over Ad Imagery, Bloomberg Reports

Nike-owned sneaker brand Converse has paused all marketing activities for the week after a recent advertisement sparked public outrage over imagery that critics compared to the Ku Klux Klan and lynching, Bloomberg News reported Friday, citing a person familiar with the matter.

Ad Controversy Sparks Backlash

The controversy stems from a marketing campaign for the Chuck 70 X sneaker, a collaboration with Karina, a member of the K-pop group Aespa. The advertisement, which featured a person in a white, calf-length garment holding black sneakers, was heavily criticized for its resemblance to a KKK robe.

Converse pulled the ad last week and issued an apology, stating, "we got this wrong." The incident also drew a response from U.S. lawmakers. The Congressional Black Caucus said in a statement Monday that it was "deeply disturbed and disappointed" by the campaign and would request a meeting with Nike executives.

Compounding Financial Headwinds

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The marketing pause comes at a critical time for the struggling brand, which has faced persistent sales declines. This self-inflicted brand damage could create further obstacles for a business already facing significant challenges.

Key financial metrics for Converse highlight the brand's difficulties:

• Sales have fallen for 13 consecutive quarters.
• Fourth-quarter sales recently tumbled 34% on a constant-currency basis.
• Parent company Nike (NKE) has seen its shares fall more than 40% this year as investors await signs of a successful turnaround under CEO Elliott Hill.

Investors will be closely watching for any commentary on the Converse brand when Nike reports its first-quarter earnings next week.