REUTERS

The new Nike Mercurial Vapor SuperFly II soccer boot.

Nike Inc.'s second-quarter profit rose 3 percent as strong demand and higher prices for its shoes, clothes and gear offset increased costs.

Nike, like many companies, has been coping with higher costs for materials, labor and freight. But the Beaverton, Oregon, company has been able to defy many trends of the down economy as its popularity has driven strong sales and allowed it to raise prices without consumer backlash.

The world's largest athletic shoe and clothing company reported Tuesday after the market closed that it earned $469 million, or $1

per share, for the quarter that ended November 30. That's up from $457 million, or 94 cents per share, in the same quarter last year.

Nike's total revenue increased 18 percent to $5.73 billion.

Results beat analysts' expectations for the quarter of 97 cents per share on revenue of $5.63 billion, according to FactSet.

“Nike Inc. portfolio is a powerful engine for growth,” Mark Parker, President and CEO of Nike, said in a statement. “We're able to accomplish this by staying focused on what we do best - deliver innovative products and experiences that serve athletes, inspire consumers and reward our shareholders.”

The company said revenue from sales of Nike brand products increased in every market around the globe, except Japan, which has long been a soft spot in its sales. The company's other business lines were buoyed by strong sales at Converse, which more than offset lower revenue from Nike Golf, Cole Haan, Hurley and Umbro brands.

Nike also said that orders for items that were scheduled to be delivered between December and April rose 13 percent by comparison to the same period last year. Investors keep a close eye on this measure as an indicator of Nike's potential performance for the upcoming period as the company does not give formal earnings guidance.

Shares rose $1.20 to $94.83 in after-hours trading. - Sapa-AP