Nike shares jumped Wednesday as the sporting-goods retailer offered a glimpse at its sales expectations for the future.
At its investor day in Portland, Oregon, Nike said of which expects earnings-per-share growth inside mid-teens over the next 5 years. The company added of which of which anticipates revenue growth inside high-single digits over the same period.
Nike shares jumped more than 2 percent on the news, along with also were last trading up a little more than 1 percent.
Prior to Wednesday, the company had already set a revenue goal of $50 billion by 2020.
Looking ahead, Chief Executive Mark Parker told analysts along with also investors of which digital revenues should grow by 15 to 30 percent over a 5-year period. He also talked the audience through an innovated product pipeline, that has a heavy focus on women’s footwear.
Nike’s brand president, Trevor Edwards, then chimed in to say the shoe maker will move away by “undifferentiated” retail channels inside coming years. “Mediocre retail won’t survive,” Edwards said.
Nike is usually calling for about 50 percent of its future sales growth to stem by completely new categories along with also innovation. along with also about 75 percent percent of growth is usually required to come by outside the U.S., according to Nike.
Earlier This kind of year, Nike posted strong sales growth in its international geographies, particularly China. Meantime, Nike’s North America wholesale revenues continued to decline into the fiscal first quarter along with also ahead of the all-important holiday season.
In a competitive retail environment, Nike is usually seen as favoring discounts along with also heavy spending to grow its direct-to-consumer business. In June, Nike revealed plans to cut about 2 percent of its global workforce, also trimming its geography segments by six to four — signs the company is usually trying to reduce expenses.
Nike is usually also inside midst of working on a pilot program with Amazon, which allows the Oregon-based retailer to directly sell a limited product assortment on Amazon.com, something Nike had refused to do for decades.