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Converse rebounds
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February 21, 1997: 7:46 p.m. ET
The athletic footwear company is kicking up a storm on Wall Street
From Correspondent Sean Callebs
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NEW YORK (CNNfn) - Dennis Rodman's feet are attracting more attention than his colorful coiffure, and no one at Converse, the sneaker Rodman endorses, is making a fuss.
The publicity seeking big-man isn't likely to end up on the cover of Good Housekeeping, but marketers say Rodman will sell shoes.
"I don't think what has happened to date in that particular incident has destroyed Rodman's credibility with his audience," said Mike Trager, senior vice president of the Marquee Group. "His audience is younger, a little more crazy…a little off-center. And that is youth."
It's just part of the turnaround at Converse, credited in large part to CEO Glenn Rupp. The company's stock floundered around $4 a share before Rupp left Wilson Sporting Goods a year ago to join Converse. The price was above $14 a share when Rodman signed on at the end of January, and by late February Converse's stock had almost doubled to above $27.
"The success we have been having of late has really been to designing shoes that both have the technology demanded at the highest levels of play, but also have the styling and the looks that are attractive to people," said Rupp.
Smith Barney, and Donaldson, Lufkin & Jenrette recommend buying Converse stock, saying the company has become focused, and its products are strong.
"This is a business that without product you are nothing…the ultimate decision is made by 15 year old boys who wander into a Foot Locker…or a finish line," said Faye Landes, vice president of Smith Barney.
Even though Converse has showed a strong turnaround, analysts issue a caveat.
When it comes to athletic footwear, there is Nike - and then there is everyone else. Nike still controls a full 44 percent of the market. Reebok is its closest competitor, and it only pulls about 16 percent of sneaker sales in the U.S
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