Nike Inc. posted a 10% jump in sales in the latest quarter, even after the sportswear giant decided to stop selling through Amazon. com Inc. and faced criticism for its support of disgraced running coach Alberto Salazar.
Revenue in the North American market, which accounts for the majority of Nike’s sales, rose 5% from a year ago. The gains were driven by footwear, as apparel sales were flat. The fastest-growing region was Greater China, where revenue jumped 20% from a year ago.
Executives said apparel sales were flat in North America because of the boost that business got a year earlier, when basketball star and Nike endorser LeBron James joined the Los Angeles Lakers, lifting sales of his jerseys. Nike has the exclusive rights to make National Basketball Association jerseys.
Nike’s shares, which have climbed 36% this year, were down 2% at $99.25 in after-hours trading.
In November, Nike said it would stop selling its clothes and sneakers directly on Amazon to focus on its own apps and stores. The company sold a relatively small amount of goods on the site, though many third parties resell Nike products there.
Instead, Nike has tried to drive consumers to its own shopping apps and reduce its reliance on traditional retailers. In the latest quarter, Chief Executive Mark Parker said digital revenue rose 38% from a year ago, including a jump of more than 70% on Black Friday in North America.
For the fiscal second quarter ended Nov. 30, Nike reported a profit of $1.12 billion, or 70 cents a share, up from $847 million, or 52 cents a share, a year ago. Overall sales were $10.3 billion for the quarter and exceeded analysts’ estimates of $10.1 billion.
The company expects a high single-digit-percentage increase in reported revenue growth for the full fiscal year, finance chief Andy Campion said on a conference call. Nike expects growth in the third quarter to be in line with the first quarter, when revenue rose 7%, he said.
During the quarter, Nike came under scrutiny for its silence on the Hong Kong protests and its support for Mr. Salazar, who received a four-year ban for doping. Mr. Salazar has said he planned to appeal the sanction. He also has disputed allegations from some former female athletes that he mistreated them.
On Oct. 1, Mr. Mark Parker sent an email to Nike employees saying the company would never condone cheating and underscoring his support for Mr. Salazar. A few days later, Mr. Parker said the company was disbanding the Nike Oregon Project, an elite running team Mr. Salazar coached.
About two weeks later, Mr. Parker said he would step down as CEO in January and become executive chairman. John Donahoe, a former eBay Inc. chief executive and a current member of Nike’s board, will take over as CEO in January.
“This has been a very thoughtful transition that has been planned for many months,” Mr. Parker said on Thursday. “Our brand and our business are as strong as they’ve ever been.”
Write to Kimberly Chin at kimberly.chin@wsj.com
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