Nike Inc today said it expects a 20 per cent increase in third-quarter revenue and now expects to report earnings of 71 cents a share to 74 cents a share for the period ending 29 February 2004.

This compares to the same period last year when revenues were hit by the timing of shipments related to the company's supply chain implementation in its European business.

"Nike's businesses in the United States and Asia Pacific regions, combined with favourable European currency exchange rates, are resulting in very healthy revenue growth for the company," Philip H Knight, chairman and chief executive officer said in a statement on Tuesday.

"We remain optimistic that the momentum we are seeing in our business is setting the stage for continued profitable growth through the remainder of fiscal 2004."