Shares in NIKE Inc were down by 2.58% in pre-market trading despite the US sporting goods giant reporting double-digit increases in both earnings and revenue during the first quarter as it hailed the success of its Consumer Direct Offense and digital capabilities.

Net income in the three months to the end of August grew 15% to US$1.1bn from $950m a year earlier, primarily due to strong global revenue growth, gross margin expansion and selling and administrative expense leverage. Gross margin, meanwhile, increased 50 basis points to 44.2%, thanks to higher average selling prices, favourable full-price sales mix, and margin expansion in Nike Direct, partially offset by higher product costs.

Total revenues increased by 10%, totalling $9.9bn, up 9% on a currency neutral basis, driven by the continued success of the company’s so-called Consumer Direct Offense, which fuelled growth across all geographies as well as wholesale and Nike Direct, led by digital.

Sales for the Nike brand were also up 10% to $9.4bn, driven by double-digit growth internationally and in Nike Direct, strong momentum in North America, and growth in almost every category led by sportswear.

Sales for Converse, meanwhile, amounted to $527m, up 7% on a currency-neutral basis, mainly driven by growth in Europe and Asia.

In the group’s North America business, sales climbed 6% to $4.15bn, while sales in Europe, the Middle East and Africa grew 9% to $2.61bn. Greater China sales, meanwhile, were up 20% to $1.38bn, while sales in Asia Pacific and Latin America grew by 14% to reach $1.27bn.

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Despite the rise in both earnings and revenue, shares in Nike were down in pre-market trading but had regained their upward trajectory at the time of going to press.

“Nike’s Consumer Direct Offense, combined with our deep line up of innovation, is driving strong momentum and balanced growth across our entire business,” said CEO Mark Parker. “Our expanded digital capabilities are accelerating our complete portfolio and creating value across all dimensions as we connect with and serve consumers.”

Chief financial officer Andy Campion added: “We are delivering stronger global growth and profitability than we anticipated entering this fiscal year. While foreign exchange volatility has increased, our underlying currency-neutral momentum continues to build as we transform how Nike operates, drives growth and creates value for our shareholders.”

FBR & Co analyst Susan Anderson, notes: “We like Nike’s innovation pipeline, international runway, long-term margin catalysts, and the continued momentum we are seeing in North America—but we remain on the sidelines given valuation.”