By  on February 7, 2007

Nike Inc. outlined a global growth strategy on Tuesday that the athletic giant hopes will help it reach $23 billion in revenues by 2011, up from $15 billion in fiscal 2006.

The Beaverton, Ore.-based company said that over the next five years it expects the Nike brand to generate 75 percent of the growth. The brand is creating new category-specific product for six target areas: running, basketball, soccer, women's fitness, men's training and sport culture.

"As the market leader, we have the ability and the responsibility to take the industry and our partners to a new and better place," Nike president and chief executive officer Mark Parker told investors during a conference at company headquarters. "The ability to connect with consumers is the single most important competitive advantage in our industry today. Nobody does this better than Nike. Our vision is clear. I've never been more excited about our opportunities."

Nike's wholesale business model will remain the primary driver, with retail partners expected to continue to generate more than 80 percent of sales in 2011. Nike plans to start executing segmented concepts with key retail partners in the U.S. over the next two years.

The company will expand direct-to-consumer businesses, which include full-price stores, factory outlets and e-commerce. By 2011, Nike anticipates direct-to-consumer sales to increase to 15 percent of sales, compared with the current 12 percent. The company also plans to open about 100 new full-price Nike stores worldwide, "Becoming a better retailer will help us be a better wholesale partner," Parker said.

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