Nike's basketball business leads profit rebound
Nike, the world's leading sportswear manufacturer, has posted better-than-expected profits following a rebound in its basketball business.
Profits rose 7.3% to $842m (£681m) in the three months to November, while revenue jumped 6.4% to $8.18bn.
Nike's basketball category and the Jordan brand accounted for about 15% of Nike's wholesale revenue in 2016.
"Basketball is back," Nike president Trevor Edwards told analysts on a conference call.
Nike, the world's largest sports footwear-maker, has released new lines such as the Jordan 31 and Kobe A.D that have proved popular with consumers.
It has been facing stiffer competition from rival Under Armour, which has a top-selling line by NBA star Stephen Curry.
Nike's sales in North America, its biggest market, rose 3% in the second quarter and were up 12% in Greater China.
The US firm stopped issuing future orders for deliveries - previously a key measure for analysts - starting in the latest quarter.
Nike shares rose 1.8% to $51.79 in New York on Tuesday but have fallen 17% this year, making the company one of the Dow's worst performers.