Dec. 20 (Bloomberg) -- Nike Inc., the world's biggest athletic-shoe maker, said second-quarter profit rose 8.1 percent, helped by iPod-compatible shoes and a tax gain.

Net income climbed to $325.6 million, or $1.28 a share, beating analysts' estimates. Profit was $301.1 million, or $1.14, a year earlier, Nike said today in a statement. Revenue grew 10 percent to $3.82 billion, the biggest gain in a year.

Chief Executive Officer Mark Parker boosted sales with the Nike Plus shoe that works with an iPod and signature footwear from basketball star LeBron James. Parker will unveil Air Force 25 to celebrate the 25th anniversary of the Air Force I sneaker, add more styles to Nike Plus and introduce a collection of women's dance shoes in the coming year. A tax agreement with the Dutch government added 13 cents a share to profit.

``They continue to do well in a lot of new areas,'' said Peter Kwiatkowski, who helps manage $21 billion at Cincinnati- based Fifth Third Asset Management, including 278,300 Nike shares as of September. ``They are going to continue to gain share.''

Shares of Beaverton, Oregon-based Nike, maker of Air Jordan basketball shoes, fell $1.39, or 1.4 percent, to $98.39 at 6:12 p.m. in trading after the close. They rose $3.59, or 3.7 percent, to $99.78 at 4 p.m. in New York Stock Exchange composite trading. They have gained 15 percent this year.

Global orders of shoes and clothing for delivery between December and April, a gauge of future sales, rose 7 percent. Excluding the impact of currency translations, they climbed 5 percent. Some analysts had expected orders, excluding currency translations, to gain 4 percent to 6 percent.

U.S., Europe

Nike will increase its commitment to its retail stores and Internet sales and is ``actively looking'' for acquisitions in markets where it's ``under-penetrated,'' Parker said on a conference call with analysts and investors.

Orders in the U.S. climbed 7 percent. In Europe, they increased 7 percent and gained 9 percent in Asia. Excluding the currency translations, orders in Europe rose 2 percent.

``The order growth seemed a bit disappointing,'' said Richard Moroney, who helps manage about $110 million in assets, including Nike shares, at Hammond, Indiana-based Horizon Investment Services LLC. ``I was hoping for a little bit more than that.''

Analysts estimated profit, on average, of $1.14 a share for the three months ended Nov. 30, according to data compiled by Bloomberg.

Nike Plus

Chief Financial Officer Don Blair said on the call sales will rise a ``high single digit'' percentage the rest of the year.

In July, the company introduced Nike Plus, a shoe that works with Apple Computer Inc.'s iPod to monitor runners' speed and other performance.

``Nike Plus is turning to be huge,'' said Parker.

Nike increased sales with the fourth signature shoe from James, priced at $150, as well as lower priced Reax sneakers, which sell for $70 at retailers such as Famous Footwear Inc. and J.C. Penney Co. A signature Converse shoe from basketball player Dwyane Wade also lifted sales.

Parker has increased apparel revenue with a Pro line of workout clothes. He said today he's ``very bullish'' on Air Force I apparel.

European Challenge

Nike sales in the U.S. rose 8 percent to $1.42 billion, including an 8 percent increase in shoes and 10 percent gain in apparel. In Europe, revenue climbed 6 percent, including a 2 percent rise for shoes and an 11 percent increase from apparel. European sales would have gained 3 percent without the benefit of currency translations.

``Nobody is winning in Europe,'' said President Charlie Denson on the call. ``It's a tough environment.''

Without the currency benefit, European shoe sales declined 1 percent because of slowing sales in the U.K. and France.

Sales in Asia jumped 15 percent to $578.2 million, while in the Americas region, they rose 4 percent to $262.5 million.

Other brands, including Cole Haan, Nike Golf and Converse, surged 21 percent to $526.8 million.

Parker, 51, introduced thin-soled fusion shoes that often cost less than Nike's sports-oriented footwear after admitting the company was late in spotting the trend toward such shoes.

Executives said on the call today Nike has had ``significant increases'' in sales of its low-profile shoes.

Profit Margins

Gross margin, or the percentage of sales left after subtracting the cost of goods sold, narrowed to 43.4 percent from 43.5 percent partly because of higher labor costs in Asia.

Selling, general and administrative expenses rose to 32 percent of sales from 30.4 percent, hurt by stock-option costs, which cut profit by 8 cents a share. Marketing spending rose 27 percent.

Nike's share of the $16.7-billion-a-year U.S. athletic-shoe market rose to 33.4 percent this year through Dec. 10 from 32.2 percent, according to Charlotte, North Carolina-based SportsOneSource. Its share of the $2 billion market for shoes over $100 jumped to 61 percent from 55.6 percent, while its share of the $2 billion market for thin-soled sneakers rose to 32.4 percent from 28.9 percent, SportsOneSource said.

To contact the reporter on this story: Andria Cheng in New York at lcheng@bloomberg.net;

Last Updated: December 20, 2006 19:10 EST