Nike projects it will hit $50B in annual revenue by '20, with its women's business "roughly doubling over the same period," according to Sara Germano of the WALL STREET JOURNAL. Speaking at the company's first investor meeting in two years, CEO Mark Parker said that Nike's revenue growth "will be attributable in part to the expansion of its women's and Jordan brand businesses." Nike Brand President Trevor Edwards said that the company's women's business is "expected to rise" to $11B by '20 from $5.7B this year, and its e-commerce business "is expected to jump" from about $1B this year to $7B in five years. Parker said that it is time for the Jordan brand to "move beyond the confines of the past thirty years of being largely limited to men's basketball." The company has been "slowly introducing Jordan branded products in different categories," making a tennis shoe for Roger Federer and track spikes for American sprinter Kori Carter (WSJ, 10/14). REUTERS' Ramakrishnan & Patnaik reported Nike's revenue increased 52.2%, or $10.5B, in the past five years to hit $30.6B in the year ending in May. Edwards: "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." Nike's sales in China rose 30% in the three months ended August, "while most other retailers struggled." Edwards said that demand in China had not slowed and that he expects growth there to continue at a "pretty significant pace." Edwards: "With China, one of the things that continues to be a great driver in the market certainly for us is the middle class continues to grow ... and they continue to be excited and passionate about sport" (REUTERS, 10/14).
AGGRESSIVE TARGET: In Portland, Allan Brettman reported Parker set "an aggressive target that would expand the company's lead over its closest rivals." Parker said, "Fifty billion. That's an ambitious goal. We know that. We make it our daily ambition to achieve ambitious goals." Wednesday's "other big announcement" was that Nike "plans to build a 125,000-square-foot Advanced Product Creation Center" at its Beaverton, Ore., HQ (OREGONIAN, 10/14).
SHOOT FOR THE MOON: CNBC’s Sara Eisen told Parker after Wednesday'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).
