Unveiling its strategy and key initiatives to achieve sustainable, long-term growth across its global portfolio of brands and businesses, Nike Inc has set a revenue target of US$27 billion (€21 billion) by the end of fiscal 2015.
"We’ve never been more inspired, innovative and aligned to achieve our goals," said Nike President and CEO Mark Parker. "We have powerful competitive advantages in our portfolio – innovative and compelling products, brands that are distinct and relevant to their consumers, and the world’s greatest athletes and teams. Our focus is to build, fuel and accelerate the power of our portfolio."*
As part of its expansion, Nike is reportedly targeting the growing middle class in developing markets such as China and Eastern Europe. Growth will also be supported by branded store openings and the expansion of existing product lines. The company plans to invest US$500 million to US$600 million each year to build its retail network.
The Nike brand is the most powerful asset in the company’s portfolio, accounting for approximately 85% of total revenue.
The bullish growth target is based on growth expectations across its portfolio, which includes the Nike brand, Cole Haan, Converse, Hurley, Jordan Brand, NIKE Golf and Umbro.
In tandem with the revenue gains, the company believes it can generate over US$12 billion of cumulative free cash flow from operations through to 2015. Both goals extend Nike’s long-term financial model of high single-digit revenue growth. Coupled with this is a projection of mid-teens earnings per share growth and expanding returns on capital.
“Nike has unlimited opportunities and limited resources,” Parker added. “Our job is to be surgical and aggressive with these resources.”
