Nike reported a surprise increase in quarterly sales Tuesday, pointing to progress on a turnaround as it forecast a bigger cost hit from US tariffs.

Shares of the sports giant jumped in after hours-trading as Nike executives said their strategic pivot -- branded as "Win Now" -- was beginning to see greater success.

"I'm encouraged by the momentum we generated in the quarter, but progress will not be linear as dimensions of our business recover on different timelines," said Chief Financial Officer Matthew Friend.

Profits were $727 million in Nike's first quarter of fiscal 2026, down 31 percent from the year-ago level. Revenues inched one percent higher to $11.7 billion.

Sales rose in every region except Greater China.

The results topped analyst estimates in both earnings and revenues.

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