US: Nike raises long-term revenue forecasts
The athletic shoe and clothing firm expects to generate sales of between $28bn and $30bn by 2015, up from the earlier target of $27bn forecast in May last year. In its most recent full-year which ended on 31 May, Nike's revenues were up 10% to $20.9bn, lifting net income by 12% to $2.1bn.
"Our ability to create innovative product and exciting retail destinations, while leveraging our powerful supply chain and strong balance sheet, allows us to attack the biggest opportunities to continue transforming the global marketplace," president and CEO Mark Parker, told an investor meeting at its world headquarters in Beaverton, Oregon yesterday (27 June).
Sales of the Nike brand are expected to reach $24-25bn in fiscal 2015, up from the previous target of $23bn.
Mid single-digit growth is seen annually through fiscal 2015 in North America, Western Europe and Japan, with low double-digit growth in Greater China, Central and Eastern Europe and emerging markets. Revenues in Greater China, which have already reached $2.1bn, are on track to double in size between 2010 and 2015.
Direct to consumer operations, which include owned retail stores and digital commerce, grew 16% to $3.2bn in the most recent year, and the goal is to have 850 owned Nike brand stores and 300 stores for its other lines.
The company reaffirmed expectations of mid-teens average annual growth, with a goal of $5.6bn in revenue by the end of fiscal 2015.
Its four affiliate brands - Cole Haan, Converse, Hurley, and Umbro - saw sales rise 13% in 2011 to $2.1bn. And the company says it is on track to double its Converse, Hurley and Umbro businesses in the five years to 2015.
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