Private equity firm Apollo Global Management will take Rackspace private in the all-cash deal.
Nike’s e-commerce sales grew 32% in fiscal 2013.
Nike Inc. has ambitious plans to nearly quadruple its e-commerce sales in four fiscal years, and it’s counting on online shoppers around the world to get there.
By fiscal 2017 Nike, No. 72 in the 2013 Internet Retailer Top 500, plans to post annual web sales of at least $2 billion, a big jump from the $540 million in e-commerce revenue the company reported for the fiscal 2013 year ended May 31, Nike brand president Trevor Edwards told Wall Street analysts and others at Nike’s recent annual investor’s day gathering.
“Our digital commerce business is critical, as it ensures that the consumer has full access to amazing products that we make and, over the years, we are planning robust growth in this area,” Edwards told attendees. “At the end of fiscal year 2013, our revenue for Nike.com was $540 million and given our focus in driving our growth, we believe it will be $2 billion by the end of fiscal year 2017.”
Nike has spent considerable resources over the years to build up Nike.com and Nike ID, an e-commerce site that allows athletes to customize their Nike gear and accessories, Edwards said. “At the center of all of these are our efforts in our digital commerce, which is experiencing rapid growth, and this will continue through the years,” Edwards told attendees. “Our integrated digital strategy will ensure that our consumers get a seamless experience when they connect with the Nike brand through whichever entryway that they actually come in.”
International e-commerce expansion is part of Nike’s growth plan. In fiscal 2014 Nike will begin selling online in Brazil and Japan. Nike already sells online in 24 countries in Europe, North America, Latin America and China the company says. “Digital is where our consumers live and it's the oxygen they breathe,” Nike direct to consumer president Christiana Shitold attendees. “Nike.com is where we can scale our brand and category experiences without the limitations of physical space and take them to more consumers in more parts of the world.”
For the 2013 fiscal year Nike reported:
- E-commerce sales increased 32.0% to $540 million from $409 million in fiscal 2012.
- Total sales reached $25.31 billion, up 8.5% from $23.33 billion in fiscal 2012.
- The web accounted for about 2.1% of total sales in fiscal 2013 compared with 1.8% in the prior year.