Sept. 20 (Bloomberg) -- Nike Inc., the world's largest athletic-shoe maker, said first-quarter profit rose more than analysts anticipated on higher sales in China and Europe, a weaker dollar and a tax gain.

Orders for clothing and footwear through January rose 11.5 percent, exceeding analysts' projections, Nike said today.

The increase in orders may support Beaverton, Oregon-based Nike's profit even as its U.S. customers pull back on spending in the face of high gasoline prices and slumping home sales. Nike is competing with Adidas AG in China, the world's fastest- growing major economy, as consumers there purchase footwear and clothes ahead of the 2008 Olympic Games in Beijing.

``Nike is a best-in-class company, and with its global exposure, it's a play on the weak dollar,'' said Michael Halloran, a Pittsburgh-based analyst with Allegiant Asset Management Group, which owns Nike shares among more than $10 billion under management.

Nike also may sell its Nike Bauer Hockey unit, saying it doesn't fit with the company's ``long-term growth priorities.'' The division makes hockey sticks, skates and helmets.

Net income climbed 51 percent to $569.7 million, or $1.12 a share, from $377.2 million, or 74 cents, a year earlier, Nike said in a statement. Excluding a 20-cent tax benefit, profit beat estimates by 5 cents. Sales rose 11 percent to $4.66 billion.

Nike rose 68 cents, or 1.2 percent, to $59 at 7:11 p.m. in trading after U.S. markets had closed. Earlier, the shares fell 24 cents to $58.32 in New York Stock Exchange composite trading. The stock has climbed 18 percent this year.

Global Orders

The increase in global orders exceeded the ``high single digit'' percentage gain estimated by John Shanley, an analyst with Susquehanna Financial Group LLLP.

Orders in Europe and Asia each gained 17 percent, while rising 3 percent in the U.S.

Excluding the tax benefit, analysts surveyed by Bloomberg estimated average profit of 87 cents a share on sales of $4.59 billion.

In the U.S., where Nike gets about one-third of its sales, revenue rose 2 percent to $1.64 billion while pretax income dropped 2 percent.

The average price per pair of shoes fell in the mid- single-digits on a percentage basis as consumers shifted away from basketball shoes to less expensive sneakers, Nike Chief Financial Officer Donald Blair said on a conference call with analysts.

Converse, Jordan

Nike's men's Converse shoes sell for as little as $36 on Zappos.com Inc.'s Web site. The company's Air Jordan ``Spiz'ike'' basketball shoe was listed at $175 on Nike's site.

Nike and Foot Locker, the largest U.S. seller of athletic shoes, agreed in May to open ``House of Hoops'' stores to boost sales of basketball shoes and clothing.

Nike has about a 54 percent share of the basketball-shoe market in the U.S., which is ``near saturation,'' estimated Shanley.

Sales in Europe climbed 16 percent on gains in soccer footwear and equipment in the U.K., Spain and Portugal. A weaker dollar increased revenue growth by 7 percentage points.

Asia revenue rose 22 percent and climbed 15 percent in the Americas region.

Weaker Dollar

The Federal Reserve's U.S. Trade Weighted Major Currency Dollar Index, which tracks the dollar's performance against seven currencies including the euro, the yen and the British pound, declined 7 percent this year through yesterday.

Nike's profit was helped by a tax gain of $105 million, or 20 cents a share, related to past overseas losses. That cut the tax rate for the quarter by 15.6 percentage points to 15 percent.

Gross margin, or the percentage of sales left after subtracting the cost of goods, increased to 44.8 percent, from 44.1 percent.

Nike bought Bauer in 1995 as part of its acquisition of Canstar Sports Inc., said Nike spokesman Alan Marks.

Bauer had sales of $163 million last year, a 19 percent gain, Marks said. It accounted for about 1 percent of the company's total revenue.

Own Stores

Chief Executive Officer Mark Parker said in February that the company will open 100 of its own stores within the next three years to showcase products as part of its goal to grow sales to $23 billion by 2011.

Last year, Parker reorganized the company's corporate structure to focus groups on six areas, including basketball and men's training, rather than on product types such as jerseys.

The shift came as Nike lost market share to Baltimore- based Under Armour Inc. in selling tight-fitting, sweat-wicking workout clothes.

To contact the reporter on this story: Mark Clothier in Atlanta at mclothier@bloomberg.net; Mary Jane Credeur in Atlanta at mcredeur@bloomberg.net.

Last Updated: September 20, 2007 19:15 EDT