Can Nike Pull Off $50 Billion in Sales by 2020?

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Can Nike Pull Off $50 Billion in Sales by 2020?
Alongside a soft U. S. apparel market, Nike has struggled with heated competition and pressure on demand for products, indicated in lower-than-expected future orders, wrote the analysts, adding
that Nike’s ecommerce growth has “witnessed a dip of late.”
As a result of these compounding headwinds, Trefis says
that while Nike is still “well-positioned for future growth,” the company will have difficulty achieving its revenue target.
Analysts at Trefis reduced their price target on NKE by 14% to $51, highlighting headwinds facing the global sportswear maker.
Also this week, analysts at Piper Jaffray reduced their price target on NKE to $50, keeping
a neutral rating while trimming their fiscal 2018 EPS estimate by $0.04 to $2.40 a share.
While it took a “prolonged 13 years” to jump from a $10 billion business to a $30 billion
one in 2015, Trefis doubts Nike can add another $20 billion in the span of five years.
Nike Inc. (NKE) set an ambitious goal in 2015 as Chief Executive Officer (CEO) Mark Parker said
the world’s largest sportswear company expected to generate $50 billion in sales by 2020.


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