By Jonathan Davies

Nike has reported a 24% rise in the three months to the end of May.

The US sportswear giant said profits were $865m (£550m), up from $698m in the same period last year, beating analysts expectations.

It comes as a result of increased sales of high-end clothing and footwear, Nike said.

Growing demand of basketball shoes in the US, and its Lunar and Free brand running shoes were particular big hits.

Nike said sales in the US alone, its biggest market, were up 13%. That helped to offset the negative effects of a strong US dollar against overseas sales.

“Our strong second quarter results once again demonstrate Nike is a growth company,” said Nike boss Mike Parker.

“The power of our portfolio continues to unlock growth, as we keep a laser focus on our biggest opportunities. The breadth and depth of that portfolio has helped us consistently deliver strong results — quarter after quarter, year after year.”

Nike's shares rose 2.3% in after-hours trading following the news.