(Reuters) -Nike beat Wall Street estimates for third-quarter revenue on Thursday, on the back of its newer sneaker styles that were launched to draw back customers amid rising competition from brands such as On and Decker's Hoka.
Shares of the world's largest sportswear maker, which had fallen 7.2% in 2023, were up nearly 1% in extended trading.
Nike had launched new styles such as LeBron 21 and Ultrafly to compete with On and Hoka, which helped pull in sales after seeing demand falter in recent quarters.
The company reported a 3% jump in its largest market, North America, where it offered heavy promotions on its Jordan shoes to attract customers.
Nike's wholesale business, which had been suffering for the last few quarters after retailers cut back on orders, bounced back and saw a 3% rise in the third quarter.
The company's net income fell to $1.17 billion, or 77 cents per share, from $1.24 billion, or 79 cents per share, a year earlier. Nike said operating overhead expenses increased 6% to $3.2 billion, primarily due to restructuring charges.
Nike announced in February it would cut about 2% of its total workforce, or more than 1,600 jobs, as the sportswear giant looks to lower expenses amid frail demand for its shoes and sneakers.
In December, the company outlined a $2 billion savings plan that it plans to implement over the next three years, which included reducing the supply of underperforming products and improving its supply chain.
The world's largest sportswear maker said revenue rose to $12.43 billion for the third quarter from $12.39 billion a year earlier. Analysts had expected $12.28 billion, according to LSEG data.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Krishna Chandra Eluri)
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