NKE Nike Inc

By Khadeeja Safdar 

Nike Inc. posted a 10% increase in sales during the summer quarter, riding strong consumer spending in the U.S. and healthy demand outside its home market for the brand's sneakers and athletic apparel.

Revenue in Nike's North American market, which accounts for about 40% of total sales, increased 6% to $4.1 billion for the first quarter ended August 31. The gains include a 5% increase in the footwear business and an 8% rise in apparel.

Shares of Nike declined about 2% in after-hours trading on Tuesday. The stock has gained more than 50% in the past year.

The sneaker giant, which has been expanding its e-commerce sales, said its efforts to reach customers through its own apps and stores paid off in the quarter. In the past year Nike has cut back the number of retailers it focuses on and started selling its goods through Amazon.com Inc.

Nike has battled Adidas AG and Under Armour Inc. for the attention of young shoppers in recent years. Earlier this month, the company ran an ad featuring NFL quarterback-turned-activist Colin Kaepernick, which divided American shoe buyers. After Mr. Kaepernick's involvement was revealed, some people defaced Nike gear and promised to boycott the company. But initial indicators showed a temporary spike in online purchases.

The latest quarter ended in August, before the ad was unveiled. After an initial 3% decline in shares following the campaign launch, investors have pushed Nike's stock to an all-time high.

Retailers from Walmart Inc. to Nordstrom Inc., have reported strong quarterly sales recently, buoyed by rising consumer confidence. But the booming economy hasn't lifted all brands. Gap Inc.'s namesake brand and L Brands Inc.'s Victoria's Secret both reported declining comparable sales in the latest quarter.

The Beaverton, Ore.--based company reported net income of $1.1 billion on sales of $9.9 billion in the three months. During the quarter, the company also repurchased 17.8 million shares for approximately $1.4 billion.

Write to Khadeeja Safdar at khadeeja.safdar@wsj.com

(END) Dow Jones Newswires

September 25, 2018 17:34 ET (21:34 GMT)

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