(Reuters) - Nike Inc NKE.N, the world's largest footwear maker, reported futures orders that breezed past analysts' estimates, powered by strong demand in North America and China.

A customer exits the Niketown store in midtown Manhattan in New York June 25, 2015. REUTERS/Brendan McDermid/Files

The company’s shares, already the top-performing year-to-date Dow component, rose 2.5 percent to $135.23 in extended trading on Tuesday, despite lower-than-expected second quarter revenue.

Nike brand orders for delivery from December through April, a gauge of demand known as “futures orders,” rose 20 percent, excluding the impact of foreign currency exchanges, as of Nov. 30, the close of the company’s fiscal second quarter.

Analysts on average had expected futures orders growth of 13.6 percent, according to Consensus Metrix.

Futures orders in Greater China jumped 34 percent, the biggest rise in two years. They rose 14 percent in North America.

New footwear launches in the basketball, running and sports categories are helping Nike draw customers towards higher-priced products, while the “athleisure” trend is driving sales in the athletic apparel sector.

In China, the company has revamped stores and increased online efforts in a bid to reinvigorate demand in the world’s No. 2 economy.

“The success we’re seeing today in China stems from decisions we made just a few years ago, to align our teams against the biggest opportunities to drive growth,” Trevor Edwards, president of Nike brand, said on the company’s post-earnings conference call.

Direct-to-consumer revenue in China jumped 51 percent in the second quarter, helped by demand for sportswear, running and basketball products, the company said on the call.

The results in China defy a broader economic slowdown that has been a cause for concern among other retailers.

WEAK RESULTS, FORECAST

Nike’s second-quarter revenue came in below expectations due to weak demand in Western Europe and Japan and the effect of a stronger dollar. Revenue rose 4.1 percent to $7.69 billion.

The company said it expects gross margins in the current quarter to be down by 50 basis points due to inventory clearance efforts in North America.

“I think the numbers are pretty low-quality, but investors will give them the benefit of doubt,” Edward Jones analyst Brian Yarbrough said. “The futures orders are holding the stock up,” he added.

Nike reported second-quarter net income jumped 20 percent to $785 million, or 90 cents per share, partly due to a lower effective tax rate.

Analysts on average had expected earnings of 86 cents per share and revenue of $7.81 billion, according to Thomson Reuters I/B/E/S.