Nike president and chief executive officer Elliott Hill made it clear to analysts on the company’s third quarter earnings call on Tuesday that he’s not interested in selling Converse despite growing speculation of a deal.

“Converse will remain an important part of the Nike, Inc. family, and we are excited about its long-term prospects,” Hill said on the call. “Overall, the work is not finished, but the direction is clear. Our teams are moving with focus and urgency, and our foundation is getting even stronger.”

The CEO added that the Converse team took some “decisive steps” this quarter to bring the brand back to a healthy business. This included layoffs at the brand in February. The exact number of employees affected were not disclosed at the time.

Still, revenues for Converse in the third quarter were $264 million, down 35 percent on a reported basis from $405 million the same time last year. The company noted this result was due to declines across all territories.

The company said it expects to have more details on its turnaround efforts for Converse by the time it hosts its investor day this fall. The exact date is yet to be announced.

Hill’s comments come after several research notes from BNP Paribas Equity Research senior analyst Laurent Vasilescu speculating that Nike may be setting the stage for a divestiture of Converse.

In a March note, Vasilescu pointed to the preamble of Nike’s 8-K filing that same month called “Item 2.05 Costs Associated With Exit or Disposal Activities.”

“This suggests Nike is exiting a business,” Vasilescu wrote last month. “Could this be the exit or disposal of Converse we flagged in our January 10Q note? We believe it could be.”

The market watcher also cited Nike’s restructuring plan revealed in 2024 to save $2 billion by fiscal year 2026. “Yet SG&A [selling, general and administrative expenses] is flat since then,” he wrote.

Vasilescu’s January note suggested that Nike could be considering a sale of Converse — indicating that the “underlying health” of the brand is “more precarious” than first thought.

The analyst pointed to challenges Converse has seen of late, including a 28 percent decline in revenues in the first quarter and with sales dropping another 31 percent in the second quarter — leading to earnings before interest and taxes of Converse “dipping into the negative territory” for the second quarter.

“We think the underlying health of Converse is more precarious as the average selling price pressure would suggest sell in into off-price and therefore sell in into key accounts could be down more than 30 percent,” Vasilescu wrote in January.

On Tuesday, the Beaverton, Ore.-based company reported net income in the third quarter of fiscal 2026 fell 35 percent to $520 million from $794 million in the year-ago period. Diluted earnings per share dropped to 35 cents from 54 cents.

Net sales in the period tallied $11.3 billion, flat from $11.3 billion on a reported basis and down 3 percent on a currency-neutral basis.

“While we are not satisfied, I am confident that our progress in the areas we prioritize: first, through our Win Now actions, point to where we are ultimately heading across our portfolio,” Hill added on Tuesday’s call. “Because of the scale and breadth of the Nike portfolio, that progress will not happen all at once.”