BEAVERTON: Nike Inc. projects it will hit $50 billion in annual revenue by 2020, with its women’s business roughly doubling over the same period, as the world’s largest sportswear maker moves to extend its hold on the athletic-gear industry.
Speaking at the company’s first investor meeting in two years, chief executive Mark Parker said Nike’s revenue growth will be attributable in part to the expansion of its women’s and Jordan brand businesses.
Nike brand President Trevor Edwards said the company’s women’s business is expected to rise to $11 billion by 2020 from $5.7 billion this year, and its e-commerce business is expected to jump from about $1 billion this year to $7 billion in five years.
Mr. Parker said it is time for the Jordan brand to move beyond the confines of the past thirty years of being largely limited to men’s basketball. The company has been slowly introducing Jordan branded products in different categories, making a tennis shoe for Roger Federer and track spikes for American sprinter Kori Carter.
Mr. Parker also announced plans for a new 125,000 square-foot product-creation center on its Beaverton campus, where construction is under way on a significant general expansion.
Nike in June reported revenue of $30.6 billion for the year ended May 31, a 10% jump from a year earlier. At its previous investor meeting in 2013, the company had projected revenue would reach $36 billion by 2017.
Nike’s recent growth has been lifted in part by the so-called athleisure movement, where consumers have increasingly been buying athletic-styled clothes and shoes for everyday wear.
The same phenomenon has also helped rivals Under Armour Inc., which last month projected it would double its revenue to $7.5 billion over the next three years, and Skechers USA Inc., which vaulted into the number-two U.S. sport footwear spot by market share earlier this year.
Mr. Parker, who became chief executive in 2006, was named earlier this year by Nike chairman and co-founder Phil Knight as his chosen successor. This past summer, Mr. Knight set out initial plans for his intended stepping down next year.
