Nike “designed to win” claims CEO
During an investor meeting at its world headquarters in Beaverton, Oregon, Nike revealed that it expects to deliver revenues of $30 billion by 2015, at the top end of its previously announced target range of $28-30 billion. It also shared a new revenue target of $36 billion for 2017.
"Nike, Inc is designed to win. We’ve never been better positioned to capitalise on the opportunities ahead of us,” said president and CEO Mark Parker.
“We have a strong management team and we are accelerating our innovation agenda to create products and services that drive growth in the marketplace, deliver exciting retail experiences globally and expand the capabilities of our powerful supply chain. We will continue to serve the athlete, reward our shareholders, manage risk and lead our industry.”
The Nike brand is expected to deliver nearly $10 billion in incremental revenue by 2017 and its apparel, women’s, and e-commerce businesses are expected to support this growth, according to Trevor Edwards, president of the Nike brand.
“Over the last three years, the Nike brand has grown close to 40% and we will continue to innovate and grow by focusing on products and services that capture the imagination of our consumer and help athletes perform at their highest potential,” he added.
In its more developed markets (North America, Western Europe and Japan), the company expects to generate average annual growth at a high-single-digit rate for the four-year period from 2014 to 2017, exceeding its previous target of mid-single-digit growth. The company expects North American and Western European revenues of more than $14 billion and $6 billion, respectively, by 2017.
In its developing geographies (Greater China, Central and Eastern Europe, and the emerging markets), the company expects to grow at a low-double-digit average annual growth rate for the four-year period. It expects its emerging markets region to grow at a mid-teens average annual growth rate and for Greater China to return to growth, reaching an average low-double-digit annual growth rate.
