‘From the evolutionary to the revolutionary’: Nike bosses discuss strategy
30/06/2014
“The objective is to raise the productivity of labour, to reduce waste of materials and produce even more premium product,” said its chairman, Don Blair, on a conference call to investors.
The company grew revenues 11% to $27.8 billion for fiscal 2014, which ended on May 31.
CEO Mark Parkers stressed that innovation was key to growth and that there is “much more in the pipeline”. “This is the pace of innovation that you should expect from us,” he said.
Digital is one of the top priorities for the coming year. It is building an integrated system of digital services to “measure, motivate and inspire” with a goal of growing the Nike+ community from tens of millions to hundreds of millions of members.
Nike saw growth across all geographies with improvement in China, where its goal was to “reset” and reduce inventories. “While we still have work to do in China, we are making great progress,” said Trevor Edwards, president of Nike Brands.
Its women’s business grow 12% to nearly $5 billion, moving it closer to the goal of $7 billion by fiscal 2017. The football footwear category grew 21% to $2.3 billion, taking market share from rival Adidas. More players wore Nike at the World Cup than the other brands combined.
Mr Parker said the company was expecting no slowdown in the rate of growth. “When I look within and across our five brands, six geographies and eight categories, I see tremendous untapped potential. There is absolutely no shortage of growth opportunities for Nike. This has never been clear to me as it is today.”
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