Nike’s eight-year licensing agreement with the NBA is “fueling strong growth” for the company in creating a sales “lift” in basketball apparel, CEO Mark Parker said in releasing earnings for Q2 ended November 30.

The sales have “accelerated,” this year, the second full year in which Nike has NBA rights.  It signed an agreement worth more than $1 billion in 2015 and but didn’t formally replace Adidas until 2017.

Nike benefitted from LeBron James’ move to the Los Angeles Lakers, with sales of Lakers-related gear tripling in the quarter, Parker said. Sales of the NBA line received a boost from its NBA City Edition apparel (hoodies, t-shirts) that was introduced this year, Parker said.

“The traction we’ve gained for basketball in Nike Direct (a direct-to-consumer program) and internationally led to strong global growth for the basketball category this quarter,” Park said.

Nike also forecasts a revenue boost tied to next year’s FIFA Women’s World Cup soccer tournament. Fourteen of the 24 national teams that have qualified will have Nike-branded uniforms, including the U.S. national team, Parker said.

Nike aims to double its digital sales to about 30% of annual revenue by 2023, CFO Andrew Campion said; digital revenue rose 41% in Q2.

“The 30% digital penetration is just a milepost on our path to the majority of our business being digital,” Campion said.

Nike also is sharpening focus on women’s footwear and apparel, which currently account for about 25% of its annual revenue. Overall, Q2 net income jumped 10% to $847 million as revenue increased 10% to $9.37 billion. In the U.S., Nike’s largest market, sales rose 9% to $3.78 billion, while those in China, the company’s fastest-growing region, increased 26% to $1.54 billion.

Contact:

Nike, Andrew Campion, CFO, 503-671-6453