New York: Nike Inc's US business continued to sputter last quarter, putting more pressure on its operations in Asia and Latin America to pick up the slack.
The world's biggest sportswear maker relied on strong overseas growth -- especially in China -- to overcome a weakening US business and help it post first-quarter profit that topped estimates.
The company also cited a move to streamline its global operations for helping bolster its bottom line.
Chief executive officer Mark Parker vowed to ignite global growth by "innovative products and the most personal, digitally connected experiences in our industry."
With major US retailers faltering over the past 18 months, Nike has been trying to generate more revenue through its own stores and websites while also chasing growth in Asia.
It's also pursuing new channels for distribution, including inking a deal this year to sell lower-end items through Amazon.com Inc.
Earnings were 57 cents a share in the first quarter that ended Aug 31, the Beaverton, Oregon-based company said after the market closed on Tuesday. Analysts projected 48 cents, on average.
Revenue of $9.07 billion was slightly short of estimates, with sales in the US falling 3% from a year earlier.
This decline was offset by a surge of 5% in Latin America and Pacific Asia, while Chinese sales advanced 9%.
The shares initially alternated between losses and gains before declining as much as 2.2% to $52.50 in after-hours trading. The stock had gained 5.7% this year after being the worst-performing member of the Dow Jones Industrial Average in 2016.
Nike disclosed on Monday that it would stop reporting future orders, which investors had used as a measure of upcoming demand.
Because selling directly to consumers was becoming a bigger portion of its revenue -- last fiscal year it reached 28% -- so-called "futures" were no longer an accurate portrayal of its business, the company said.
The decision also came as orders were weakening.
After years of dominance, Nike is facing heavier competition from its traditional rivals, as well as non-athletic brands pushing into workout clothing.
To stay nimble, the company this year cut 2% of its global workforce, or about 1,400 jobs, with half the cuts coming at its headquarters.
US sneaker retailers such as Foot Locker Inc and Finish Line Inc say a lack of innovation and catchy styles from shoemakers have depressed demand.
Those critiques fall squarely on Nike, which has said it needs to develop shoes faster to keep up with consumer tastes that shift more rapidly than ever.
The company is now investing to accelerate its supply chain while making more frequent tweaks to products -- updating colours, prints and materials.
Nike maintained an aura of confidence earlier this year, with Parker saying its innovation pipeline would get it back on track. That led it to forecast revenue to gain at a mid- to high-single-digit percentage this fiscal year.