SBD/September 21, 2012/Marketing and Sponsorship

Nike CFO: Company Plans To Repurchase $8B In Stock Over The Next Four Years

Mark Parker said Nike's goal is to earn $28-30B by the end of fiscal 2015
Nike CFO Don Blair said that the company has the “flexibility to split its stock price,” with a plan to “repurchase $8 billion of its stock over the next four years,” according to Allan Brettman of the Portland OREGONIAN. Blair said that Nike “periodically splits its share price to keep the per-share cost affordable.” His comments “came toward the end of an uneventful” annual shareholders' meeting “that lasted about 40 minutes.” Nike President & CEO Mark Parker “reviewed several high points for the company from the past year.” One of the high points included “revenue examples, such as running, which is now a $3.7 billion business -- a 32 percent increase over fiscal 2012, which was 30 percent higher than fiscal 2011.” Converse, which Nike bought out of bankruptcy in '09 when the brand "was earning about $200 million annually, now is a $1.3 billion brand.” Nike lightweight Lunar shoes, launched “four years ago, accounted for $2 billion in sales in the last year.” Parker also noted that two subsidiaries, Umbro and Cole Haan, “are for sale.” Parker said, "It's crucial we concentrate on better serving our core consumers." He also reiterated the company goal “to earn $28 billion to $30 billion by the end of fiscal 2015” (Portland OREGONIAN, 9/21).
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