The sportswear maker has recently announced a new position of a chief digital officer who will work on the online operations of the company.
The sportswear leader Nike, Inc. is working on accelerating its digital strategy as it has introduced a new position of a Chief Digital Officer; as its first ever Chief Digital Officer the company has appointed Adam Sussman. The newly hired executive will directly report to the president of Nike, Inc., Trevor Edwards. The global sportswear is making an effort to sustain its number one spot in the global market.
The new CDO has been with the sportswear giant for over 2 years now ever since 2014. As part of the new position, Sussman will be in charge of developing digital products for all its online platforms. The online platforms include Nike.com, Nike + along with numerous other website that sell the company’s products. It will also be working on enhancing the customers experience on its online platforms – and make consumer engagement more entertaining.
By the year 2020, the sports apparel corporation is hoping to report annual sales of as much as $50 billion. This goal will also depend on the e-commerce reach that the business will have – as it will include all online sales as well. In an effort to enhance its core business, the sportswear organization is aiming at creating a huge online ecosystem.
According to the plans of the company, it is aiming at generating $7 billion via sales in the next five year – which indicates an upward trend of as much as 600% in its online sales. It further stated that the current year is a highly essential one for the growth of its online business. It is also investing a lot to enhance the customer experience on its websites. During the first quarter of fiscal year 2016, on a currency neutral basis the e-commerce sales went up by as much as 46%- additionally, the online services of the company are speeding up global.
During the first quarter of fiscal year 2016, the revenue generated by Nike was $16 billion however according to reports the revenue for the third quarter are expected to go up by as much as 9.9% at least to $8.2 billion. Furthermore, the analysts at Wall Street are expecting the revenue for the entire year to amount to $32.80 billion which would indicate an increase of 7.2% from the revenue generated in 2015.
In a time same of six years, the organization has also been working on growing its bottom line – earnings per share for the current year are estimated to be at $2.16 indicating an increase of 16.6%. However on a year to date basis the stock has dropped by as much as 11% to $55.69.
Analysts at JP Morgan have given a rating of Outperform to the stock – furthermore as per the details of the report, the global sports industry is growing now as more people are inclined towards a healthy lifestyle due to which the demand for sportswear and fitness goods have increased in the market all across the world.
The JP Morgan analysts have given a target price of $67.50 to Nike stock which indicates a potential upside of 21.34% from its current share price.
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