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Nike’s Earnings Just Beat Wall Street’s Expectations

Nike Inc, the world’s largest footwear maker, reported quarterly revenue and profit that topped Street estimates as the company kept a lid on costs and saw greater demand in Western Europe, China and emerging markets.

Shares of the Dow component were up nearly 3 percent at $54.67 in after-market trading on Thursday.

In the face of intense competition in North America and to promote its core brands such as ZoomX, Air VaporMax and Nike React, the company earlier in June said it would cut 2 percent of its global workforce and trim a quarter of its shoe styles as it looks to become nimbler.

The company’s selling, general and administrative expenses fell 4 percent to $2.7 billion.

Sales in Western Europe, Nike‘s second-largest market, were up 4 percent in the fourth quarter ended May 31.

Nike also said it saw greater demand for its core brands including Jordan, and in sportswear and running categories in the quarter.

Nike‘s sales in Greater China jumped 11 percent.

In China, the company has revamped stores and increased online efforts in a bid to reinvigorate demand in the world’s No. 2 economy.

Nike‘s net income rose to $1 billion, or 60 cents per share, in the quarter, from $846 million, or 49 cents per share, a year earlier.

Revenue rose 5.3 percent to $8.68 billion.

Analysts on average had expected revenue of $8.63 billion, according to Thomson Reuters I/B/E/S.

Excluding certain items Nike earned 60 cents per share, well ahead of analysts’ average estimate of 50 cents.