Nike expects to deliver $50 billion in revenues by 2020, CEO Mark Parker said.
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The company is working to improve the progress on key strategic actions and tactics to help achieve profitable and sustainable sales growth in the long term.
The company plans to increase its geographic presence in most countries, which will boost its unit sales globally. “These are the kind of opportunities that will propel us to $50 billion, $50 billion that’s an ambitious goal we know that”.
The promise implies a 10% compounded annual growth rate.
“Women, in particular, have fueled a new lifestyle of sport, driving growth of athletic apparel and footwear”, Parker said.
“In fact our brand is accelerating… there’s an appetite for premium authentic brands in China”, Chief Executive Mark Parker said on CNBC.
In the last five years, Nike’s revenue increased 52.2% in order to hit $30.6 billion in the year ended May 2015. It also plans to broaden the appeal of its Jordan brand for female consumers. Nike has already begun to gradually take the Jordan brand to other apparel and accessories categories, such as the launch of a limited edition of Roger Federer’s line of tennis shoes. The retail company can also benefit in this regard as it does not have to significantly drain its cash reserves in buying new departmental stores, as majority will be facilitated by the e-commerce facility. “This is a 125,000 square foot facility that will house a few of our most advanced manufacturing and design technologies”.
To remind those who might not be aware of that, Nike in fiscal 2015, which ended May 31, generated $30.6 billion. In the next five years, the company forecasts that the business will grow to over $11 billion.
The world’s largest sportswear maker’s revenue is set to grow faster over the next five years than it had in the previous five. The rapid growth will also assist the retailer to continue to pop higher in ranking on the Fortune 500 list. Over the past year, Nike.com has seen “incredible growth”, said Martin.
In addition, the company is also vying to cash in on the growing trend and adoption of healthy lifestyle by the millennials.
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The company’s president, Trevor Edwards, said “Our women’s business today is outpacing our men’s business on dotcom”. “And that cultural shift is running deeper than a few people think”.
