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SBD/September 21, 2010/Finance
Parker Predicts Nike Revenue Will Grow 42% In Next Five Years
Published September 21, 2010
Nike recorded $19B in revenue for the FY ending May 31, and Nike President & CEO Mark Parker yesterday at an annual shareholder meeting predicted revenue will grow by 42% over the next five years, primarily from "developed and developing markets around the world," according to Allan Brettman of the Portland OREGONIAN. Parker "did not point to specific reasons for this robust growth, but his speech emphasized the importance of the company's subsidiary brands -- Cole Haan, Converse, Hurley, Nike Golf and Umbro." Parker said that Converse's revenue is "expected to double" to $2B in the next five years, and he predicted that Hurley's revenue also "would double." Parker added that Nike "will continue to emphasize product innovation." Parker and Nike Chair Phil Knight "both referred to the $79 stock price the company hit earlier Monday, an all-time split-adjusted record." The stock closed at $78.37. The annual meeting, "once a production that often attracted a top athlete and was splashed with glitz, featured only the 13 board directors sitting in front of an audience of about 200 stockholders" (Portland OREGONIAN, 9/21). At presstime, Nike shares are trading at $77.54, down 1.1% from yesterday's close (THE DAILY).
ADIDAS EXPECTS GROWTH: adidas AG Chair & CEO Herbert Hainer yesterday said that the company "will increase sales and profit in 2011 as China rebounds and Russia becomes the company's top European market." Hainer said that sales in China "returned to growth this quarter after declining" 10% last year and 16% in the first half of '10. Hainer added that "sales of new products such as Reebok ZigTech trainers will also help boost sales next year," which "will help compensate for the lack of a sporting event the size of this year’s World Cup." Hainer: "I don't see anything, honestly, that should hinder us from growing in 2011 and the years ahead." BLOOMBERG NEWS' Elfes & Jarvis note adidas has said that sales this year "will exceed" $14.4B, "driven by record soccer sales after this year's World Cup." adidas "sold more than twice as many jerseys as at the last tournament four years ago, including 200,000 Spanish jerseys in the weeks after the team became world champion." Meanwhile, Hainer said that acquisitions are "unlikely to play much of a role in Adidas's strategy," though he "didn't rule out the possibility of making one" (BLOOMBERG NEWS, 9/21). Hainer said the company has "worked hard for the last three years so I am extremely optimistic for our company and for all our brands" (Bloomberg TV, 9/21).