10 Oct Nike chief executive Mark Parker forecasts $36 billion by 2017
Nike will reach $36 billion in wholesale revenue by fiscal year 2017 and $30 billion by fiscal year 2015, chief executive Mark Parker told investors and stock analysts Wednesday morning.
In addition, Parker set these fiscal 2017 targets:
–Apparel to grow from $7.5 billion to $10 billion.
–Women’s business to grow from $4 billion to $7 billion.
–Direct to Consumer e-commerce business to grow from nearly $550 million to $2 billion.
“Nike is designed to win. We’ve never been better positioned to capitalize on the opportunities ahead of us,” Parker said in his presentation. “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.”
Parker delivered the figures at the outset of a day-long event in the Tiger Woods Center on the World Headquarters campus near Beaverton that will feature presentations by other top Nike executives.
Parker singled out several areas where he saw opportunities for Nike to increase revenue.
One of the personal favorites for Parker, who joined the footwear and apparel company as a shoe designer, is the Flyknit shoes with a precisely stitched upper. So far, the technology has been limited to a line of running shoes.
Upcoming Flyknit’s applications are “beyond what you can imagine,” Parker said, “and we’ll share a little more on that as we move throughout the year.”
Women’s business can also grow, Parker said.
“We’ve been growing our women’s business faster than we have our men’s business,” he said.
Parker was followed by Nike Brand president Trevor Edwards and by Jayme Martin, vice president and general manager of global categories.
Greater China, a geographic region dominated China, is one area where Nike has not realized as much growth as anticipated. Edwards said the company has recalibrated its approach in the region.
The company has “reset strategy to better serve the consumer and set our business up for the next wave of growth,” he said.
Martin, the former vice president of global running, noted that more than 15,000 people a day join the digital community of Nike+ Running.
Martin also staked out Nike’s ground in the world of soccer.
When the brand entered this category it was not well-received, he recalled.
“We didn’t belong,” was the popular reception, he said. “We didn’t have the heritage. We didn’t know the game…well, we lead the market now.”
That was a bold statement, as Germany-based Adidas AG and Nike differ over who really leads.
“All this comes together in 9 months at the World Cup in Brazil,” Martin said. “We will bring the full power of the Nike brand.”
— Allan Brettman