Nike Shares Hit All-Time High On Promise Of $50 Billion Revenues By 2020

Nike Shares Skyrocket

Nike shares raced to a new high on Thursday as the sportswear king promised to hit revenues of $50 billion by 2020.

If Nike can deliver on its promise, the company’s guidance for $50 billion in revenue would reflect a 63% increase over the last fiscal year. That means Nike believes its growth will continue to rise and best the last five years.

Nike said its women’s business will drive that growth by nearly doubling in size. CEO Mark Parker also cited the expansion of Nike’s Jordan brand. He also noted that e-commerce sales for the retail giant are expected to reach $7 billion in five years, up from $1 billion this year.

Nike shares quickly jumped to $129.17 a share, a 2.6% rally.

Nike, the long-time leader in the sportswear market, has some tough competition from the likes of Under Armour and surprisingly Sketcher. However, it has been able to greatly capitalize on the athletic apparel trend known as athleisure.

Under Armour, which counted on North America for 91% of sales in 2014, believes its worldwide revenue will double to $7.5 billion in three years.

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Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at PeterMondrose@BusinessPundit.com or (929) 265-0240.