Thursday
10.10.2024
11:23 PM
Login form
Search
Calendar
Entries archive

Africa Live News

Main » 2013 » October » 10 » NIKE, Inc. Announces Target for FY17 Revenues of $36 Billion
2:47 PM
NIKE, Inc. Announces Target for FY17 Revenues of $36 Billion
NIKE Brand expected to deliver nearly $10 billion in incremental revenues by FY17

BEAVERTON, Ore. - Thursday, October 10th 2013 [ME NewsWire]

Innovation Agenda Continues to Drive Strong Revenue Growth

(BUSINESS WIRE) NIKE, Inc. (NYSE:NKE) today provided an overview of its progress on key strategic initiatives to achieve sustainable, profitable long-term growth. During an investor meeting at its world headquarters in Beaverton, Ore., the Company stated it expects to deliver revenues of $30 billion by fiscal year 2015, at the top end of its previously announced fiscal year 2015 target range of $28-30 billion and shared a new fiscal year 2017 revenue target of $36 billion. Additionally the Company reaffirmed its long-term financial model of high single-digit revenue growth, mid-teens earnings per share growth and expanding returns on capital.

"NIKE, Inc. is designed to win. We’ve never been better positioned to capitalize on the opportunities ahead of us,” said NIKE, Inc. President and CEO Mark Parker. "We have a strong management team and we are accelerating our innovation agenda to create products and services that drive growth in the marketplace, deliver exciting retail experiences globally and expand the capabilities of our powerful supply chain. We will continue to serve the athlete, reward our shareholders, manage risk, and lead our industry.”

NIKE Brand Overview

The NIKE Brand is expected to be the largest contributor of incremental growth as the Company targets NIKE, Inc. fiscal year 2017 revenues of $36 billion.

"The NIKE Brand is expected to deliver nearly $10 billion in incremental revenue by Fiscal 2017 and our apparel, women’s, and e-commerce businesses will support this growth,” said Trevor Edwards, President of the NIKE Brand. "Over the last three years, the NIKE Brand has grown close to 40 percent and we will continue to innovate and grow by focusing on products and services that capture the imagination of our consumer and help athletes perform at their highest potential.”

NIKE Brand – Geographic Opportunities

The Company also updated its projected long term growth plans in the NIKE Brand geographies through fiscal 2017. In its more developed geographies (North America, Western Europe and Japan), NIKE now expects to generate average annual growth at a high single digit rate for the four year period from fiscal 2014 through fiscal 2017, higher than the previous target of mid-single digit growth. The Company expects North America and Western Europe to reach over $14 billion and $6 billion, respectively, by fiscal year 2017.

In its developing geographies (Greater China, Central & Eastern Europe and Emerging Markets), the Company stated it expects to grow at a low double-digit average annual growth rate for the four year period from fiscal 2014 through fiscal year 2017. The Company’s expects its Emerging Markets geography to grow at a mid-teens average annual growth rate and for Greater China to return to growth, reaching an average low double-digit rate of annual growth for fiscal year 2014 through fiscal 2017.

NIKE, Inc. – Direct to Consumer

The Company provided an overview of its plans to drive consistent growth in its Direct to Consumer (DTC) operations. Due to strong results in its inline and factory stores as well as on-line, the Company now anticipates achieving its fiscal year 2015 NIKE Brand DTC revenue goal of $5 billion almost a year earlier than planned. The Company also announced plans for NIKE Brand DTC revenues to reach over $8 billion by the end fiscal 2017. Over the next four years incremental growth in DTC revenues is expected to be driven by e-commerce sales, which are projected to grow to $2 billion, as well as by new door expansion and continued same store sales gains in its factory and in-line stores.

Converse

The Company also discussed its plans for Converse, which is projected to grow at a mid-teens average annual growth rate, to $3 billion in revenues by the end of fiscal 2017. Over the next four years the Company expects steady growth from the Chuck Taylor franchise, with more rapid growth from Converse’s other brands, new apparel offerings, expansion of its Direct to Consumer business and conversion of additional markets to direct distribution.

NIKE, Inc. – Long-term Financial Objectives

Reviewing performance against the Company’s long-term financial model, Chief Financial Officer Don Blair highlighted the Company’s delivery of consistent results through dynamic market environments: "We are focused on driving sustainable, profitable growth and increasing returns on capital. The significant cash we expect to generate will enable us to invest in compelling consumer experiences, industry-leading innovation and premium destinations, in-store and on-line, to drive our growth, while consistently increasing cash returns to our shareholders.”

The Company stated its primary financial objectives through 2017:

    High single digit average annual revenue growth
    Mid-teens Earnings Per Share growth (average annual rate)
    Maintaining a mid-twenties rate of Return on Invested Capital
    Days in Inventory improvement of 5 to 10 days
    Low double-digit Free Cash Flow growth (average annual rate)
    Annual capital expenditures in a range of 3 to 4% of annual revenues
    Increasing levels of annual cash returned to shareholders through annual dividend increases and continued stock repurchases

Additional Presenters and Replay

Additional presenters from NIKE, Inc.’s senior management included: Elliott Hill, President, Global Geographies and Sales; Jayme Martin, Vice President & GM Global Categories; Jeanne Jackson, President, Product and Merchandising; Christiana Shi, President, Direct to Consumer; and Eric Sprunk, Chief Operating Officer.

Investors and media are invited to view the replay of the webcast and slides from the event at http://investors.nikeinc.com. The transcript and other event materials will also be available approximately 24 hours after the event and accessible for approximately a year after the event.

About NIKE, Inc.

NIKE, Inc., based near Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Wholly-owned NIKE, Inc. subsidiaries include Converse Inc., which designs, markets and distributes athletic lifestyle footwear, apparel and accessories and Hurley International LLC, which designs, markets and distributes surf and youth lifestyle footwear, apparel and accessories. For more information, NIKE’s earnings releases and other financial information are available on the Internet at http://investors.nikeinc.com and individuals can follow @Nike.

This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed from time to time in reports filed by NIKE, Inc. with the Securities and Exchange Commission, including Forms 8-K, 10-Q, and 10-K.

Contacts

NIKE, Inc.

Investor Contact:

Kelley Hall, 503-532-3793

 

Media Contact:

Kellie Leonard, 503-671-6171

 

 

 

Permalink: http://me-newswire.net/news/8780/en
Views: 259 | Added by: africa-live | Rating: 0.0/0
Total comments: 0
Name *:
Email *:
Code *: