Nike aiming for $50B in revenue in fiscal 2020

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.

The company is working to improve the progress on key strategic actions and tactics to help achieve profitable and sustainable sales growth in the long term.

The company plans to increase its geographic presence in most countries, which will boost its unit sales globally.

In a move that even CEO Mark Parker described as “ambitious”, the sports apparel brand informed its investors that its revenue is going to hit $50 billion, securing that it will not be dethroned by its rivals, USA Today reported.

The goal implies an approximately 10% compounded annual growth rate over the period.

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.

Nike (NKE) shares sprinted to a record high on Thursday following the sportswear giant’s declaration that annual revenue will hit $50 billion by fiscal-year 2020. Over the next five years incremental growth in DTC revenues is expected to be driven by e-commerce sales, which are projected to grow to $7 billion.

Under Armor last month forecast revenue would more than double to $7.5 billion by 2018, though off a much smaller base. The company has also launched track spikes for Kori Carter, a renowned American sprinter, under the Jordan brand.

Nike is setting up a 125,000 square-foot facility on its campus just outside Portland, Oregon, focused on “advanced manufacturing and design technologies”, including 3-D printing capabilities, which it had already been using to produce a few shoes. By contrast, Nike tallied $30.6 billion in sales in its most recent fiscal year ended May 31. The rapid growth will also assist the retailer to continue to pop higher in ranking on the Fortune 500 list. Over the a year ago, Nike.com has seen “incredible growth”, said Martin.

In addition, the company is also vying to cash in on the growing trend and adoption of healthy lifestyle by the millennials.

Nike has six styles of women’s footwear that bring in over $100 million in sales, said Jayme Martin, vice president and GM of global categories. “And that cultural shift is running deeper than a few people think”.