NIKE, Inc. Announces Target for FY17 Revenues of $36 Billion

  NIKE, Inc. Announces Target for FY17 Revenues of $36 Billion

 NIKE Brand expected to deliver nearly $10 billion in incremental revenues by
                                     FY17

          Innovation Agenda Continues to Drive Strong Revenue Growth

Business Wire

BEAVERTON, Ore. -- October 9, 2013

NIKE, Inc. (NYSE:NKE) today provided an overview of its progress on key
strategic initiatives to achieve sustainable, profitable long-term growth.
During an investor meeting at its world headquarters in Beaverton, Ore., the
Company stated it expects to deliver revenues of $30 billion by fiscal year
2015, at the top end of its previously announced fiscal year 2015 target range
of $28-30 billion and shared a new fiscal year 2017 revenue target of $36
billion. Additionally the Company reaffirmed its long-term financial model of
high single-digit revenue growth, mid-teens earnings per share growth and
expanding returns on capital.

"NIKE, Inc. is designed to win. We’ve never been better positioned to
capitalize on the opportunities ahead of us,” said NIKE, Inc. President and
CEO Mark Parker. “We have a strong management team and we are accelerating our
innovation agenda to create products and services that drive growth in the
marketplace, deliver exciting retail experiences globally and expand the
capabilities of our powerful supply chain. We will continue to serve the
athlete, reward our shareholders, manage risk, and lead our industry.”

NIKE Brand Overview

The NIKE Brand is expected to be the largest contributor of incremental growth
as the Company targets NIKE, Inc. fiscal year 2017 revenues of $36 billion.

“The NIKE Brand is expected to deliver nearly $10 billion in incremental
revenue by Fiscal 2017 and our apparel, women’s, and e-commerce businesses
will support this growth,” said Trevor Edwards, President of the NIKE Brand.
“Over the last three years, the NIKE Brand has grown close to 40 percent and
we will continue to innovate and grow by focusing on products and services
that capture the imagination of our consumer and help athletes perform at
their highest potential.”

NIKE Brand – Geographic Opportunities

The Company also updated its projected long term growth plans in the NIKE
Brand geographies through fiscal 2017. In its more developed geographies
(North America, Western Europe and Japan), NIKE now expects to generate
average annual growth at a high single digit rate for the four year period
from fiscal 2014 through fiscal 2017, higher than the previous target of
mid-single digit growth. The Company expects North America and Western Europe
to reach over $14 billion and $6 billion, respectively, by fiscal year 2017.

In its developing geographies (Greater China, Central & Eastern Europe and
Emerging Markets), the Company stated it expects to grow at a low double-digit
average annual growth rate for the four year period from fiscal 2014 through
fiscal year 2017. The Company’s expects its Emerging Markets geography to grow
at a mid-teens average annual growth rate and for Greater China to return to
growth, reaching an average low double-digit rate of annual growth for fiscal
year 2014 through fiscal 2017.

NIKE, Inc. – Direct to Consumer

The Company provided an overview of its plans to drive consistent growth in
its Direct to Consumer (DTC) operations. Due to strong results in its inline
and factory stores as well as on-line, the Company now anticipates achieving
its fiscal year 2015 NIKE Brand DTC revenue goal of $5 billion almost a year
earlier than planned. The Company also announced plans for NIKE Brand DTC
revenues to reach over $8 billion by the end fiscal 2017. Over the next four
years incremental growth in DTC revenues is expected to be driven by
e-commerce sales, which are projected to grow to $2 billion, as well as by new
door expansion and continued same store sales gains in its factory and in-line
stores.

Converse

The Company also discussed its plans for Converse, which is projected to grow
at a mid-teens average annual growth rate, to $3 billion in revenues by the
end of fiscal 2017. Over the next four years the Company expects steady growth
from the Chuck Taylor franchise, with more rapid growth from Converse’s other
brands, new apparel offerings, expansion of its Direct to Consumer business
and conversion of additional markets to direct distribution.

NIKE, Inc. – Long-term Financial Objectives

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

The Company stated its primary financial objectives through 2017:

  *High single digit average annual revenue growth
  *Mid-teens Earnings Per Share growth (average annual rate)
  *Maintaining a mid-twenties rate of Return on Invested Capital
  *Days in Inventory improvement of 5 to 10 days
  *Low double-digit Free Cash Flow growth (average annual rate)
  *Annual capital expenditures in a range of 3 to 4% of annual revenues
  *Increasing levels of annual cash returned to shareholders through annual
    dividend increases and continued stock repurchases

Additional Presenters and Replay

Additional presenters from NIKE, Inc.’s senior management included: Elliott
Hill, President, Global Geographies and Sales; Jayme Martin, Vice President &
GM Global Categories; Jeanne Jackson, President, Product and Merchandising;
Christiana Shi, President, Direct to Consumer; and Eric Sprunk, Chief
Operating Officer.

Investors and media are invited to view the replay of the webcast and slides
from the event at http://investors.nikeinc.com. The transcript and other event
materials will also be available approximately 24 hours after the event and
accessible for approximately a year after the event.

About NIKE, Inc.

NIKE, Inc., based near Beaverton, Oregon, is the world's leading designer,
marketer and distributor of authentic athletic footwear, apparel, equipment
and accessories for a wide variety of sports and fitness activities.
Wholly-owned NIKE, Inc. subsidiaries include Converse Inc., which designs,
markets and distributes athletic lifestyle footwear, apparel and accessories
and Hurley International LLC, which designs, markets and distributes surf and
youth lifestyle footwear, apparel and accessories. For more information,
NIKE’s earnings releases and other financial information are available on the
Internet at http://investors.nikeinc.com and individuals can follow @Nike.

This press release contains forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially. These
risks and uncertainties are detailed from time to time in reports filed by
NIKE, Inc. with the Securities and Exchange Commission, including Forms 8-K,
10-Q, and 10-K.

Contact:

NIKE, Inc.
Investor Contact:
Kelley Hall, 503-532-3793
or
Media Contact:
Kellie Leonard, 503-671-6171
 
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