Nike President & CEO Mark Parker yesterday said that the company's revenue "will grow" to $50B by '20, setting an "aggressive target that would expand the company's lead over its closest rivals," according to Allan Brettman of the Portland OREGONIAN. Nike recorded $30.6B in revenue for its FY that "ended in May." Parker, speaking at a Nike investor meeting, said, "Fifty billion. That's an ambitious goal. We know that. We make it our daily ambition to achieve ambitious goals." Brettman notes yesterday's "other big announcement" was that Nike "plans to build a 125,000-square-foot Advanced Product Creation Center" at its Beaverton, Ore., HQ. Parker said that the center "would house knitting machines and 3D design and printing capability, among other things." Nike officials also released other earnings forecasts. Nike Brand President Trevor Edwards said that its e-commerce business, now about $1B, "will reach" $7B by the end of FY '20. Edwards added that Nike Women's, now a $5.7B segment, "will nearly double" to $11B by '20. Finally, Nike VP & GM/Global Categories Jayme Martin said that Running and Jordan Brand have "both more than doubled in size" since '13, with Running expected to reach $7.5B by the end of FY '20 and Jordan "projected to scale globally" to reach $4.5B (Portland OREGONIAN, 10/15).
SHOOT FOR THE MOON: CNBC’s Sara Eisen told Parker after yesterday's meeting that adding $20B in sales "over the next five years" is an ambitious goal. Parker replied, "Absolutely, and we're not shy about being ambitious with our goals, whether it's product or the business. We feel very confident in our position in the marketplace here in the United States and around the world.” Parker said in order to reach that goal, the company needs to "make sure that the product that we create is the absolute best it can be.” He said, "The innovation that’s coming leading up to the Rio Olympics next year is extraordinary, the best we've ever had. So I feel confident in the product. I also feel confident in how we're connecting to consumers. The brand is resonating around the world and we're investing a lot in servicing and really being there for the consumer, connecting the consumer not only to Nike but also to each other, a lot of positive opportunities for us” ("Power Lunch," CNBC, 10/14).
WOMEN'S APPAREL A BIG FOCUS: USA TODAY's Hadley Malcolm notes Nike has "started reconfiguring stores to focus more on women's apparel and is opening women's-only stores in select cities." The stores have "tailored experiences for female athletes, such as sports bra fittings." Nike also "plans to broaden the appeal of its Jordan brand for female consumers" (USA TODAY, 10/15). Edwards said, "Our women's business today is outpacing our men's business on dotcom. So it gives us a great indication that more women want access to our brand" (REUTERS, 10/14).
