India To Host U17 FIFA World Cup India Gets Olympic Ban Overturned Barcelona Visit A FC Cartagena Windfall Indian Court Criticizes Businessmen Oltmans: Bhopal Centre Needs New Turf India-SA Series A Cash Cow For Ten Valencia Politician Critical Of Grand Prix AFL Carlton's Doubles Gaming Revenue Finance Notes Braunschweig Reports Slight Loss
Enter amount in full numerical value, without currency symbol or commas (ex: 3000000).
SBD Global/October 11, 2013/Finance
Nike India Planning To Use Running To Reach Teenage, Young Adult Market
Published October 11, 2013
NIKE BY THE NUMBERS: In Portland, Allan Brettman wrote Nike CEO Mark Parker's revenue forecast of $30B by FY '15 and $36B by FY '17 was the "top announcement among several key predictions made" during the company's Investor Day. Nike VP & GM of Global Basketball Craig Zanon said that with "footwear and apparel from Nike, Jordan Brand and Converse, Nike is the clear leader worldwide in basketball." He added that socks "designed specifically for basketball" earned $100M a year in revenue in the U.S. and is "expected to grow." With Nike's marketing backing, the product also is "expected to be popular globally." Meanwhile, Nike VP & GM/Women's Training & Fitness Heidi O'Neill said that the company has "introduced an array of products targeting women that has been well-received." Women's revenue is expected to grow from $4B a year to $7B. While the company "will not hit its revenue targets in the Greater China region as quickly as it forecast in a similar meeting two years ago, company executives detailed plans to reignite sales in that part of the world" (Portland OREGONIAN, 10/10). Nike's FY '13 revenue was reported at $25.3B in late June (THE DAILY). Nike VP & GM of Global Categories Jayme Martin "staked out Nike's ground in the world of soccer." He said that when the brand "entered this category it was not well-received." Martin said the popular reception was, "We didn't belong. We didn't have the heritage. We didn't know the game ... well, we lead the market now" (OREGONLIVE.com, 10/9).
FOCUSING ON CHINA: Nike execs said that the company is "recalibrating its approach to consumers" in China, and has a plan on "how to reignite what once was double-digit growth." Nike CFO Don Blair "rejected the idea that the company had miscalculated China." He said, "We set ourselves a goal and we won't make the goal on the original timetable. But we're absolutely confident we will make that goal in time." Blair added, "In China, we have a market that's evolving, the consumers' expectations are changing and we're evolving our business. We've had a period and we will have some time on resetting our revenues. We've said this year we'll be flat but we're absolutely convinced we will grow again in China and we'll grow at an accelerated rate" (OREGONLIVE.com, 10/9). At presstime, shares of Nike were trading at $73.13 per share, up 3.2% from the close of trading yesterday (THE DAILY).