Reviewing its Direct to Consumer operations, which includes owned retail stores and digital commerce, the Company reported 16% growth to $3.2 billion in fiscal 2011. Direct to Consumer operations within the Other Businesses and within each of the NIKE Brand geographies, except Japan, delivered growth across their inline, factory and digital (e-commerce) businesses.
The Company provided an overview of its plans to drive consistent growth in its Direct to Consumer operations. By fiscal 2015 the Company estimates it will have approximately 850 owned stores for the NIKE Brand and approximately 300 owned stores within the Other Businesses. Given plans to elevate the consumer experience and position the Company's brands in the world's premium shopping locations, and strong growth opportunities in digital commerce, NIKE, Inc. reaffirmed expectations of mid-teens average annual growth in its Direct to Consumer operations across all geographies with a goal of $5.6 billion in revenue by the end of fiscal 2015.
NIKE, Inc. - Affiliate Brands
NIKE, Inc.'s four Affiliate brands - Cole Haan, Converse, Hurley, and Umbro - reached $2.1 billion in sales in fiscal 2011, an increase of 13 percent over its fiscal 2010 performance excluding the impact of changes in currency exchange rates. In discussing progress in each of the businesses, the Company updated its fiscal 2015 revenue targets for each Affiliate. Compared to its fiscal 2010 base, the Company is on track to double its Converse, Hurley and Umbro businesses through organic growth and market conversion opportunities by fiscal 2015.
NIKE, Inc. - Long-term Financial Objectives
Reviewing performance against the Company's long-term financial model, Chief Financial Officer Don Blair highlighted delivery of consistent results through dynamic market environments, "We are focused on driving sustainable, profitable growth and increasing returns on capital. The significant cash we expect to generate through fiscal 2015 will enable us to invest in compelling consumer experiences, industry-leading innovation and premium retail destinations to drive our growth goals, while consistently increasing cash returns to our shareholders."
The Company reiterated its primary financial objectives through 2015:
• High single-digit revenue growth (average annual rate) • Mid-teens Earnings Per Share growth (average annual rate) • Return on Invested Capital of 25% • Increasing dividends within a target calendar year payout range of 25-35% of trailing four quarter earnings per share
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.
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