|Nike targets $36 billion in revenue by fiscal 2017||| Print ||
|Written by MAE ANDERSON, AP Retail Writer|
|Wednesday, 09 October 2013 15:59|
NEW YORK (AP) — Nike's key growth areas include China, women's sports and e-commerce, and the athletic gear maker plans to have $36 billion annually in revenue by fiscal 2017.
The company outlined its growth objectives at its first investor meeting in two years at its Beaverton, Ore., headquarters on Wednesday. Nike has been on a growth spurt in North America lately, with strength in its basketball business and the Nike brand, but it has been dealing with a slowdown in growth in China.
Still, CEO Mark Parker said Wednesday that China remains a key area of focus.
"China is in reset mode, but we're really focused on the great position we have there," he said in an interview with The Associated Press. "It remains one of our biggest growth areas.
The company expects revenue, which totaled $25.31 billion in fiscal 2013, to grow 19 percent to $30 billion by fiscal 2015, the high end of company guidance of $28 billion to $30 billion, and to rise to $36 billion by fiscal 2017.
Other areas include Nike's women's business, which is growing faster than men's. It also plans to grow its children's business and its e-commerce sales, which the company hopes to will increase to $2 billion by 2017 from $540 million this year. It plans to connect its online offerings like Nike+ and Nike Training Club more closely to its e-commerce operations.
In the basketball arena, basketball socks are a popular trend, and Nike's basketball socks business now totals $100 million.
Shares rose 87 cents, or 1.2 percent, to $71.15 in afternoon trading, closer to the high end of the stock's 52-week range of $44.83 to $75.25.