Nike set to grow faster, hit $50 billion in sales by 2020

By Sruthi Ramakrishnan and Subrat Patnaik (Reuters) - The world's largest sportswear maker's revenue is set to grow faster over the next five years than it had in the previous five. Nike Inc said on Wednesday it expects revenue to increase 63 percent to $50 billion by fiscal 2020, boosted by growth in its e-commerce, women's and Jordan brand businesses. The sportswear maker's revenue increased 52.2 percent, or $10.5 billion, in the past five years to hit $30.6 billion in the year ended May 2015. Nike forecast sales in the women's business would almost double, topping $11 billion in 2020 from $5.7 billion in 2015. "Our women's business today is outpacing our men's business on dotcom. So it gives us a great indication that more women want access to our brand," Nike Brand President Trevor Edwards told Reuters while at the company's investor meeting. The company's e-commerce business, which brings in just over $1 billion per year, is expected to grow to $7 billion by 2020. Nike, co-founded by Phil Knight and Bill Bowerman in 1964, has raced ahead of No.1 rival Adidas, while fending off smaller rivals such as Under Armour Inc. Nike's revenue is expected to rise 39 percent over the next four years, while Adidas's is expected to rise 33.3 percent, according to Thomson Reuters I/B/E/S. Under Armor last month forecast revenue would more than double to $7.5 billion by 2018, though off a much smaller base. Nike is also expanding its Jordan business beyond being a predominantly U.S.-based and basketball brand, and sees strong growth potential in western Europe and China, said Edwards, a 23-year Nike veteran. The company expects revenue from the business to grow to $4.5 billion by 2020. Edwards said revenue in the business had doubled over the last few years, but declined to give details. Nike's sales in China rose 30 percent in the three months ended August, while most other retailers struggled. Edwards said demand in China had not slowed and that he expects growth there to continue at a "pretty significant pace". "With China, one of the things that continues to be a great driver in the market certainly for us is the middle class continues to grow ... and they continue to be excited and passionate about sport." Nike's shares closed flat at $125.84 on Wednesday. The stock is up nearly 31 percent this year, the best performer among the 30 companies on the Dow Jones industrial average. (The story has been refiled to corrects to "ended" from "ending" in paragraph 3.)