NIKE, Inc. (NYSE:NKE) hosted its 2017 Investor Day today which
provided an overview on how the Company is accelerating its next
phase of long-term, sustainable and profitable growth. Fueled by
the Consumer Direct Offense, the Company stated during the investor
meeting that it expects to drive high-single digit revenue growth,
expanding margins and mid-teens earnings per share growth on
average over the next five years.*
This press release features multimedia. View
the full release here:
http://www.businesswire.com/news/home/20171025006506/en/
Mark Parker shared NIKE’s strategy for
driving accelerated growth over the next five years. (Photo:
Business Wire)
“The consumer today expects a premium experience, with
innovative product and services delivered faster and more
personally,” said Mark Parker, Chairman, President and CEO of NIKE,
Inc. “Fueled by a transformation of our business, we are attacking
growth opportunities through innovation, speed and digital to
accelerate long-term, sustainable and profitable growth.”*
Consumer Direct Offense
The Company expanded on its new Consumer Direct Offense which
aims to serve the athlete faster and more personally, at scale, led
by digital. With focused growth through key categories this new
offense will connect the NIKE Brand and products with consumers in
new and more powerful ways across 12 key cities and 10 key
countries.
Triple Double Strategy
The Company noted that it is investing in its Triple Double
Strategy to drive growth through three core areas of the business.
These three core areas include:
- 2X Innovation: To double the cadence
and impact of innovation, the Company will lead with more distinct
platforms and scale innovation faster, will edit-to-amplify to give
consumers better choices and will create new aesthetics spanning
both sport and style;
- 2X Speed: To double speed to market by
reducing the average product creation timeline by over 50 percent
through investments in end-to-end digital capabilities to serve
consumers faster; and
- 2X Direct: To double direct connections
with consumers and shape the future of retail led by Nike.com and
all new owned and partnered NIKE Consumer Experiences.
New Membership Launch
The Company announced its new NikePlus membership program that
will provide member-only access to the products members love,
matched to their individual preferences and buying patterns. This
unique access to NIKE’s greatest innovations and hottest styles is
about three key services that serve consumers on their terms: first
access to the latest products, exclusive access to personalized
services and experiences, and reserved product for members
only.
Long-term Financial Objectives
Addressing NIKE’s new Consumer Direct Offense and Triple Double
strategy, Andy Campion, Executive Vice President and CFO, stated,
“We have implemented new consumer focused strategies several times
in our company’s history, and in each instance, we have ignited
NIKE’s next horizon of long-term growth.”*
With this, the Company unveiled five measures of success that
reflect the operational drivers of NIKE’s long-term financial model
and will guide its investment approach over the next five years.
These five measures are:
1. New innovation platforms are expected to
drive over 50 percent of revenue growth.
2. Revenue generated from digital platforms,
both owned and partnered, is anticipated to increase from nearly 15
percent in fiscal year 2018 to more than 30 percent.
3. Speed-to-market is anticipated to double
as NIKE reduces the overall product creation timeline by over
50%.
4. Leveraging the Triple Double Strategy is
expected to drive higher, more consistent full-price sell-through
in season.
5. Ensure consumers in our 12 key cities and
10 key countries rate NIKE as their #1 favorite brand.*
The Company stated during the investor meeting that, by
geography, it expects to grow North America in the mid-single digit
range, Europe, Middle East & Africa (EMEA) in the mid-to-high
single digit range, Greater China in the low to mid-teen range, and
Asia Pacific & Latin America (APLA) in the high single-digit to
low double-digit range, in each case on average over the next five
years. The Company expects to reinvest three to four percent of
NIKE, Inc. revenue over the next five years through capital
expenditures and expects the target range for Return on Invested
Capital to average in the low 30 percent range. Finally, the
Company expects to continue to increase shareholder returns by
maintaining a 25 to 35 percent dividend payout ratio coupled with
share repurchases.*
Additional Presenters and Replay
Additional presenters from NIKE, Inc.’s senior management
included: Trevor Edwards, President, NIKE Brand; Michael Spillane,
President, Product & Categories; Eric Sprunk, Chief Operating
Officer; Heidi O’Neill, President, NIKE Direct; Adam Sussman, Chief
Digital Officer; Elliott Hill, President, Geographies &
Integrated Marketplace; Tom Clarke, President, Innovation; Jayme
Martin, VP & GM, Global Categories; and Andy Campion, EVP &
Chief Financial Officer.
Investors and media are invited to view the replay of the
webcast and slides from the event at http://investors.nike.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. subsidiary brands
include Converse, which designs, markets and distributes athletic
lifestyle footwear, apparel and accessories; and Hurley, which
designs, markets and distributes surf and youth lifestyle footwear,
apparel and accessories. For more information, NIKE, Inc.’s
earnings releases and other financial information are available on
the Internet at http://investors.nike.com. Individuals can also
visit http://news.nike.com and follow @NIKE.
* The marked paragraphs contain 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 with the Securities and
Exchange Commission (SEC), including Forms 8-K, 10-Q and 10-K.
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NIKE, Inc.Investors:Nitesh Sharan,
503-532-2828orMedia:Kellie Leonard,
503-671-6171
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