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SBD/June 29, 2011/Finance
Nike Executives Projecting Annual Revenue of $28-30B By 2015
Published June 29, 2011
THE COST OF DOING BUSINESS: Nike CFO Don Blair yesterday addressed increasing costs and said, "As we've come out of the recession, there's been a lot of inflation in different parts of the world economy. ... But this is something we have anticipated. We’ve got the brand strength to continue to drive our revenue growth and we’ve started to take some pricing. We think we’ll be doing a little bit more in the second half of the year. So in the long run, we're confident we’re going to continue to raise our margins." Blair said inventories were up but added, “We're really not that concerned about inventory." Blair: "What we do believe is that the industry is going to have to be very careful as we go forward. But we feel fantastic about our ability to manage our inventories and our factory outlet stores have done a phenomenal job keeping the markets clean" ("Street Signs," CNBC, 6/28).
STAR SEARCH: Denson talked about the status of two of Nike's most polarizing endorsers, Heat F LeBron James and Tiger Woods. CNBC's Darren Rovell noted Nike this year “sold more than 500,000 pairs of LeBron’s signature shoes this year.” Denson said, "The game is healthier than it's ever been, the ratings are as high as they’ve ever been, and a lot of it is attributed to LeBron. ... We’re still very, very excited about the future for him.” He added of Woods, "What we want from Tiger is to get healthy and get him back on a golf course. Some of the things that have happened while he's ... been off the golf course is actually going to make his return even more compelling” ("Closing Bell," CNBC, 6/28).