Nike targets 40% revenue growth by building brands
Nike aims to grow revenue by 40% over the next five years by opening more branded stores and increasing sales of its master brand and portfolio brands such as Converse and Umbro.
The sportswear company says it wants to grow revenue to $27bn (£17.8bn) by 2015. Nike posted revenue of $19.2bn (£12.72bn) in its last full fiscal year.
Unveiling the company’s “global growth strategy” at a conference for investors, Mark Parker, president and chief executive of Nike, says it aims to “build, fuel and accelerate the power” of its portfolio.
Nike says it wants to grow revenue for its main brand, which accounts for about 85% of its total revenue, in developed regions – North America, Western Europe, and Japan – by $3bn (£1.9bn) to $3.5bn (£2.3bn) by the end of 2015. It expects “low double-digit growth” in developing markets.
Plans to open 250 to 300 new Nike-branded stores worldwide over the next five years were also unveiled.
In addition, the company says it wants to double revenue for its Converse brand by 2015.
The sportswear firm has invested heavily in marketing this year to tap into enthusiasm for the World Cup in South Africa. Although not an official sponsor, it supplies boots to players including Wayne Rooney and team kits for the US and Brazil. .
Umbro, as England’s kit maker, also recently launched a campaign featuring indie band Kasabian
