Sign in - Join Free - Inquiry BasketHelp -
Home > NIKE, Inc. Raises FY15 Revenue Target to $28-30 Billion
 News centre
    News centre
    China Footwear News
    International Footwear News
    Trade Fairs
    Shoes secret
 
  NIKE, Inc. Raises FY15 Revenue Target to $28-30 Billion

Company Updates Progress on FY 2015 Global Growth Strategy; Strong Innovation Agenda Drives New Revenue Target

 

BEAVERTON, Ore.NIKE, Inc. (NYSE: NKE) today provided an overview of its fiscal 2011 results and reviewed progress on key strategic initiatives

to achieve sustainable, profitable long-term growth across its global portfolio of brands. During an investor meeting at its world headquarters in Beaverton, Ore., the Company increased its fiscal 2015 revenue target to a new range of $28-30 billion, up from its previous target of $27 billion announced in May 2010. Additionally, the Company reaffirmed its goal of generating $12 billion of cumulative free cash flow from operations from fiscal 2011 through fiscal 2015. Both goals extend NIKE, Inc.’s long-term financial model of high single-digit revenue growth, mid-teens earnings per share growth and expanding returns on capital.

NIKE Brand Overview

Given strength of performance and robust growth opportunities identified for the NIKE Brand portfolio, the Company also raised its fiscal 2015 revenue target for the NIKE Brand to $24-25 billion, up from the previous target of $23 billion announced in May 2010.

 

By category, fiscal 2011 wholesale revenue growth rates excluding the impact of changes in currency for the NIKE Brand were as follows:

NIKE Brand Category FY11 Wholesale Revenue** FY11 Growth**/***
Running $2.8 billion +30%
Basketball $1.9 billion +11%
Football (Soccer) $1.8 billion +8%
Men’s Training $1.7 billion +15%
Women’s Training $842 million +13%
Action Sports $470 million +18%
Sportswear $5.1 billion +3%

NIKE Golf1 $623 million -4%

 

1 NIKE Golf is reported within the Company’s Other Businesses.

 

NIKE Brand – Geographic Opportunities

The Company also updated plans for growth in the NIKE Brand geographies through fiscal 2015. In its developed geographies (North America, Western Europe and Japan), NIKE expects to generate solid growth off of a large base, reaffirming a mid single-digit average annual growth rate for the five year period from fiscal 2010 through fiscal 2015. In its developing geographies (Greater China, Central & Eastern Europe and Emerging Markets), the Company reiterated its expectation of low double-digit growth communicated in May 2010. Additionally, the Greater China geography reached $2.1 billion in revenue and was confirmed to be on track to double in size by fiscal 2015 off of its fiscal 2010 base.

 

NIKE, Inc. – Direct to Consumer

Reviewing its Direct to Consumer operations, which includes owned retail stores and digital commerce, the Company reported 16% growth to $3.2 billion in fiscal 2011. Direct to Consumer operations within the Other Businesses and within each of the NIKE Brand geographies, except Japan, delivered growth across their inline, factory and digital (e-commerce) businesses.

 

The Company provided an overview of its plans to drive consistent growth in its Direct to Consumer operations. By fiscal 2015 the Company estimates it will have approximately 850 owned stores for the NIKE Brand and approximately 300 owned stores within the Other Businesses. Given plans to elevate the consumer experience and position the Company’s brands in the world’s premium shopping locations, and strong growth opportunities in digital commerce, NIKE, Inc. reaffirmed expectations of mid-teens average annual growth in its Direct to Consumer operations across all geographies with a goal of $5.6 billion in revenue by the end of fiscal 2015.

 

NIKE, Inc. – Affiliate Brands

NIKE, Inc.’s four Affiliate brands – Cole Haan, Converse, Hurley, and Umbro – reached $2.1 billion in sales in fiscal 2011, an increase of 13 percent over its fiscal 2010 performance excluding the impact of changes in currency exchange rates. In discussing progress in each of the businesses, the Company updated its fiscal 2015 revenue targets for each Affiliate. Compared to its fiscal 2010 base, the Company is on track to double its Converse, Hurley and Umbro businesses through organic growth and market conversion opportunities by fiscal 2015.*

By brand, fiscal 2011 revenues for each of the four NIKE Affiliates were:

Brand FY11 Revenues FY11 Growth***
Cole Haan $518 million +12%
Converse $1.1 billion +15%
Hurley $252 million +14%
Umbro $224 million +2%

 

NIKE, Inc. – Long-term Financial Objectives

Reviewing performance against the Company’s long-term financial model, Chief Financial Officer Don Blair highlighted 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 through fiscal 2015 will enable us to invest in compelling consumer experiences, industry-leading innovation and premium retail destinations to drive our growth goals, while consistently increasing cash returns to our shareholders.”

 

The Company reiterated its primary financial objectives through 2015:

High single-digit revenue growth (average annual rate)
Mid-teens Earnings Per Share growth (average annual rate)
Return on Invested Capital of 25%
Increasing dividends within a target calendar year payout range of 25-35% of trailing four quarter earnings per share