Nike in growth mode

Associated Press

NEW YORK — Nike Inc. CEO Mark Parker says the company plans to increase revenue 40 percent over the next five years by putting a heavier emphasis on international markets and its full array of brands.

“Our power is quantifiable and our potential continues to grow,” Parker said Wednesday at an investor conference in New York.

Nike plans to increase its revenue to $27 billion by 2015. Its revenue was $19.3 billion in its most recent fiscal year.

“We will continue to build, fuel and accelerate the Nike Inc. portfolio,” Parker said.

The company derives the bulk of its business through its namesake brand but said it is seeing tremendous growth in its other businesses such as Converse, Hurley and Umbro. Converse alone is expected to double in size over the next two years.

The company said it plans to assume ownership of the brand in China — where it has only licensing rights — within the year.

Nike, the world’s largest athletic shoe and apparel company, also said it will put a heavier emphasis in markets such as India and Brazil, where the middle class is growing quickly.

The company said it will continue to rely on its long-standing key to success — innovative products and a connection to consumers. But the company said it will put a heavier emphasis on its clothing business and its relationship with retailers to help drive its growth.

“We always believe we are working in an infinite marketplace,” Charlie Denson, Nike’s brand president said.

The Beaverton, Ore.-based company also said Thursday that it plans to generate total cash flow from operations of $12 billion by 2015. The company said it will use $5 billion of that to repurchase shares.

Parker said Nike, which some analysts consider cash-heavy, also is considering buying other businesses — but only if Nike could add value to them.

Nike shares fell 86 cents to $76.49 in early afternoon trading.