Tiger ......who is Tiger?
"(Reuters) - Nike Inc (NKE.N) raised its sales forecast for its namesake brand on Tuesday, betting that strong Chinese and Brazilian demand and a price increase in the coming year will help it outpace rising costs.
Shares leaped $8.28, or 10.1 percent, to $89.90 on Tuesday.
Chief Executive Mark Parker told investors on a conference call that the sports gear and apparel maker, which reported stronger-than-expected fiscal fourth-quarter profit late on Monday, is ahead of schedule on meeting its targets.
The company had a target of $23 billion in annual revenue for its main Nike brand by fiscal 2015, according to Charlie Denson, president of Nike brand. Denson said on Tuesday that the company is now on course to generate $24 billion to $25 billion in annual revenue by that year.
Including the company's other brands, Cole Haan, Comverse, Umbro and Hurley, annual revenue will reach a range of $28 billion to $30 billion by 2015, up from a previous target of $27 billion announced in May 2010, according to Nike Chief Financial Officer Don Blair.
Denson also said Nike brand has "strong momentum" across all its categories for 2012.
China and Brazil are two of Nike's best opportunities for growth in coming years, Denson added.
Nike's Greater China business topped $2 billion in annual revenue for the first time recently, double the level of 2007, Denson noted.
"We plan on doubling it again over the next couple of years," Denson said.
Apparel makers, including Nike, are struggling with higher material, labor and freight costs.
However, Eric Sprunk, vice president, merchandising and product, for Nike brand, said the company will raise prices "in a more meaningful way across a broad array of lines" in fiscal 2012, which started in June.
Denson suggested that strong demand and innovation will help Nike offset higher costs.
"We are operating from a position of strength," Denson said. "We will not compromise our long-standing commitment to overall profitability."
Still, Blair, the CFO, warned that Nike's gross profit margin will likely fall by at least 300 basis points during the first quarter of its fiscal 2012 year. Higher input costs and air freight costs will drive some of this erosion, he noted.
For the whole of Nike's 2012 fiscal year, the gross profit margin will be down about 100 basis points. But in years following that, the gross margin can be "a source of growth," Blair added.
Blair also reiterated Nike's goal to generate $12 billion of free cash flow by its 2015 fiscal year.
Nike should be able to increase dividends consistently and buy back more shares in coming years, the CFO added."
I started another thread with a report put out by the Temper School of Business on the value of Tigers endorsement.