Nike announced its long-term strategies yesterday which include a revenue growth forecast of $23 billion in FY2011, compared to $15b in FY06, and plans to open 100 Nike stores worldwide in premium shopping locations over the next three years. CEO Mark Parker was quoted by Reuters saying, "Nike is as hungry and as driven as we've ever been before and becoming more focused and more competitive." Half of the new store openings are expected to be in the U.S. and 75% of its projected revenue growth is seen coming from the Nike brand. Nike says its four key markets are the U.S., U.K., Japan and China, and it plans to "drive deeper growth" in these markets which combine for 61% of current revenues. It also says it will "invest aggressively" in the other BRIC markets of Brazil, Russia and India, saying each has the potential to become a billion dollar market.
Sources: Press release, Reuters
Commentary: Nike Beats Estimates with Smaller Brands and Tax Benefits • Under Armour: The Time Has Come to Sweat This Stock - Barron's • The Long Case For Nike - 'Just Do It'
Stocks/ETFs to watch: Nike (NYSE:NKE). Athletic footwear retailers: Foot Locker (NYSE:FL), Finish Line (NASDAQ:FINL). Competitors: Adidas (OTCQX:ADDYY), Under Armour (NYSE:UA)
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