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Strong China sales boost Nike results, shares rise

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A man outside a Nike store in Beijing; strong China sales boosted results for the sports giant

Nike scored a big jump in China sales in the second quarter and reported better-than-expected results on Friday, following a coronavirus hit earlier in the year.

After suffering declines in revenues in the last two quarters, Nike reported an increase in sales in the quarter ending November 30 as it has bolstered direct selling efforts to consumers in the wake of upheaval in the retail industry.

The sports giant said more than 90 percent of company-owned stores are now open, with some at reduced hours. However, the company continues to experience declines in customer traffic in many regions due to Covid-19, Nike said.

Net income rose 12 percent from the year-ago period to $1.3 billion following a nine percent increase in revenues to $11.2 billion.

Sales were especially strong in greater China, rising 24 percent from the year-ago period.

Shares jumped 2.3 percent to $142.50 in after-hours trading.