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NIKE, Inc. Announces Target For FY17 Revenues Of $36 Billion

In its developing geographies (Greater China, Central & Eastern Europe and Emerging Markets), the Company stated it expects to grow at a low double-digit average annual growth rate for the four year period from fiscal 2014 through fiscal year 2017. The Company’s expects its Emerging Markets geography to grow at a mid-teens average annual growth rate and for Greater China to return to growth, reaching an average low double-digit rate of annual growth for fiscal year 2014 through fiscal 2017.

NIKE, Inc. – Direct to Consumer

The Company provided an overview of its plans to drive consistent growth in its Direct to Consumer (DTC) operations. Due to strong results in its inline and factory stores as well as on-line, the Company now anticipates achieving its fiscal year 2015 NIKE Brand DTC revenue goal of $5 billion almost a year earlier than planned. The Company also announced plans for NIKE Brand DTC revenues to reach over $8 billion by the end fiscal 2017. Over the next four years incremental growth in DTC revenues is expected to be driven by e-commerce sales, which are projected to grow to $2 billion, as well as by new door expansion and continued same store sales gains in its factory and in-line stores.

Converse

The Company also discussed its plans for Converse, which is projected to grow at a mid-teens average annual growth rate, to $3 billion in revenues by the end of fiscal 2017. Over the next four years the Company expects steady growth from the Chuck Taylor franchise, with more rapid growth from Converse’s other brands, new apparel offerings, expansion of its Direct to Consumer business and conversion of additional markets to direct distribution.

NIKE, Inc. – Long-term Financial Objectives

Reviewing performance against the Company’s long-term financial model, Chief Financial Officer Don Blair highlighted the Company’s delivery of consistent results through dynamic market environments: “We are focused on driving sustainable, profitable growth and increasing returns on capital. The significant cash we expect to generate will enable us to invest in compelling consumer experiences, industry-leading innovation and premium destinations, in-store and on-line, to drive our growth, while consistently increasing cash returns to our shareholders.”

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