NIKE, Inc. (NYSE:NKE) today provided an overview of its progress on key strategic initiatives to achieve sustainable, profitable long-term growth. During an investor meeting at its world headquarters in Beaverton, Ore., the Company stated it expects to deliver revenues of $30 billion by fiscal year 2015, at the top end of its previously announced fiscal year 2015 target range of $28-30 billion and shared a new fiscal year 2017 revenue target of $36 billion. Additionally the Company reaffirmed its long-term financial model of high single-digit revenue growth, mid-teens earnings per share growth and expanding returns on capital.
"NIKE, Inc. is designed to win. We’ve never been better positioned to capitalize on the opportunities ahead of us,” said NIKE, Inc. 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.”
NIKE Brand Overview
The NIKE Brand is expected to be the largest contributor of incremental growth as the Company targets NIKE, Inc. fiscal year 2017 revenues of $36 billion.
“The NIKE Brand is expected to deliver nearly $10 billion in incremental revenue by Fiscal 2017 and our apparel, women’s, and e-commerce businesses will support this growth,” said Trevor Edwards, President of the NIKE Brand. “Over the last three years, the NIKE Brand has grown close to 40 percent 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.”
NIKE Brand – Geographic Opportunities
The Company also updated its projected long term growth plans in the NIKE Brand geographies through fiscal 2017. In its more developed geographies (North America, Western Europe and Japan), NIKE now expects to generate average annual growth at a high single digit rate for the four year period from fiscal 2014 through fiscal 2017, higher than the previous target of mid-single digit growth. The Company expects North America and Western Europe to reach over $14 billion and $6 billion, respectively, by fiscal year 2017.