The largest sporting-goods company in the world, Nike has said that its gross margin has risen 16 per cent during the third quarter till 28 February, 2013.

The company said that its gross margin rose 16 per cent to $662 million or 73 cents a share, from $569 million, or 61 cents recorded in the same period of the previous year. An average of 20 estimates in a poll conducted by Bloomberg had predicted a gross margin of 67 cents a share for the quarter.

The Beaverton, Oregon-based company has been able to address investor concerns that its profitability will be affected due to slowdown in demand in China. Nike said that orders for the Nike brand in China increased even after sales fell 10 per cent, recording the second fall in as many quarters. Several analysts have increased their forecasts for the company for the coming year after the encouraging results from the comoany.

The shares of the company increased 11 per cent to $59.53 in New York, which is its highest increase since 28 October, 2008. The shares of the company have risen 15 per cent this year, much ahead of 9.1 per cent gained by Standard & Poor's 500 Index.