In October of 2015, Nike CEO Mark Parker stated the Swoosh was aiming for a $50 billion USD sales revenue by 2020, despite being met with great scepticism. Now with the recent struggles in the market Nike has experience — and seeing increased competition from a resurgent Adidas & Under Armour — analysts have remained pessimistic about the goal. Taking a look at Nike’s past, it took the brand 13 years to add $20 billion USD in revenues. With a recent analysis by Forbes, a closer look at three of Nike’s hopeful areas of growth have been broken-down: e-commerce, women’s apparel, and the Jordan Brand.
Nike hopes to generate $7 billion USD through e-commerce by 2020, that would require a 42% rate of annual growth from the $1.2 billion USD in digital sales it posted in 2015. The company was on course through fiscal 2016 and the first months of fiscal 2017, however Nike has only managed to grow its sales in the channel by around 35%. In addition, e-commerce sales growth have been declining during each quarter of the year.
Moving forward, Nike has placed women’s apparel on its priority list. Currently Nike’s women’s category consists of about 29% of total men and women’s sales, and the brand hopes to take it to a $11 billion USD business by 2020. Nike’s women division has been outpacing it’s men’s as of late, leading to double-digit growth overall.
On the Jordan Brand front Nike hope’s to grow revenue to about $4.5 billion USD by 2020. However the Swoosh has been dealing with some tough competition from the likes of Adidas, and Under Armour with its Stephen Curry signature line. Curry’s line has been out selling most of Nike’s counterparts, leading to cheaper variants of the KD and LeBron silhouette’s.
With all these factors above, it seems pretty unlikely that Nike will be able to reach its $50 billion USD goal by 2020. However the Swoosh still have three years to turn things around and we all know the love a challenge.