Nike, the US sports shoe and clothing giant, has reported better than expected profits despite the current global economic slowdown which has been unsettling retailers.

The company reported net income of $129m for the three months to 30 November, up from $119m for the same quarter last year.

The results were slightly better than had been expected, and in after-hours trade on Wall Street, Nike shares climbed from their closing level of $53.79 to $55.

"We are pleased to report positive earnings growth for Nike's global business even in the face of a challenging economic environment," said Nike's chairman and chief executive Phil Knight.

Faster growth in Europe and Asia

Overall, second quarter revenues grew by 6% to $2.3bn.

Nike's fastest revenue growth came from outside of the US.

Revenues for the European region, which also includes Africa, rose by 14% to $583m, while in Asia-Pacific they grew by 11% to $325m.

In the US, revenues grew by only 3% to $1.2bn.

The company said it remained cautious about prospects for the US retail sector.

"The retail situation continues to be highly uncertain," said Donald Blair, Nike's chief financial officer.

"So we are fairly cautious over the back half of the year."