Nike shares jumped Wednesday as the sporting-goods retailer offered a glimpse at its sales expectations for the future.
At its investor day in Portland, Oregon, Nike said it expects earnings-per-share growth in the mid-teens over the next five years. The company added that it anticipates revenue growth in the high-single digits over the same period.
Nike shares jumped more than 2 percent on the news, and were last trading up a little more than 1 percent.
Prior to Wednesday, the company had already set a revenue goal of $50 billion by 2020.
Looking ahead, Chief Executive Mark Parker told analysts and investors that digital revenues should grow from 15 to 30 percent over a five-year period. He also talked the audience through an innovated product pipeline, with a heavy focus on women's footwear.
Nike's brand president, Trevor Edwards, then chimed in to say the shoe maker will move away from "undifferentiated" retail channels in the coming years. "Mediocre retail won't survive," Edwards said.
Nike is calling for about 50 percent of its future sales growth to stem from new categories and innovation. And about 75 percent percent of growth is expected to come from outside the U.S., according to Nike.
Earlier this year, Nike posted strong sales growth in its international geographies, particularly China. Meantime, Nike's North America wholesale revenues continued to decline into the fiscal first quarter and ahead of the all-important holiday season.
In a competitive retail environment, Nike is seen as favoring discounts and heavy spending to grow its direct-to-consumer business. In June, Nike revealed plans to cut about 2 percent of its global workforce, also trimming its geography segments from six to four — signs the company is trying to reduce expenses.
Nike is also in the midst of working on a pilot program with Amazon, which allows the Oregon-based retailer to directly sell a limited product assortment on Amazon.com, something Nike had refused to do for decades.