Beaverton, Ore.-based Nike Inc. says new stores and rising popularity of its namesake and smaller brands will help drive revenue up more than 40 percent to $27 billion by 2015. “We're going to continue to build, fuel and accelerate the Nike portfolio,” said ceo Mark Parker, addressing a crowd during an investor day held in New York, reports Reuters.
The athletic shoe and clothing manufacturing company expects almost $23 billion of that overall $27 billion revenue target to come from the Nike brand itself. Its smaller brands, however, are among the fastest-growing and are helping the company extend its reach of into new markets and territories.
Nike executives say more than 70 percent of the company's future growth will come from outside North America, compared to 60 percent today, and that its China business will double within five years. The company operates through wholesale channels, as well as its own fleet of stores, including 472 factory stores in 33 countries.
Discussing its store fleet, Parker says the company will focus on smaller stores in the future, rather than the large Niketown stores it opened in the past. “I don't think you'll see more of the … mega footprints that we have today as much as smaller footprints that we can showcase the best of the category product,” he says.
He says consumers can also look for stores that focus on a particular brand, such as Nike or Converse, and smaller single-category stores, like soccer or running.
By 2015, Nike plans to add up to 300 owned Nike stores across the globe and double its direct-to-consumer businesses, including its owned stores and online business, to more than $5 billion.