• by Sarah Mahoney  @mahoney_sarah, December 22, 2006

Fueled by strong sales of its Nike+ and Converse lines, Nike reported a 10% increase in sales for its second quarter to $3.8 billion, compared to $3.5 billion for the same period last year. Net income for the period rose 8% to $325.6 million.

In the U.S., footwear sales gained 8% for the quarter, while apparel sales in the U.S. grew 10%.

"Nike+ is turning out to be huge," the company said in its conference call. "In less than 6 months Nike+ users have logged more than 3 million miles . . . and there are over 3 million Plus-ready shoes in the global marketplace and we expect to double by year end. Clearly, our confidence in this concept is proving to be accurate."

Nike+ shoes feature a built-in pocket under the insole specially engineered for the Nike+ iPod sensor.

Converse was also a bright spot, with "revenue up nearly 50 percent. Dwyane Wade was named Sports Illustrated's Sportsman of the Year. And Footwear News named Converse "'Brand of the Year' for 2006," the company said. Cole Haan revenues gained 9% over the prior year, driven by sales of its Dress Air product.

The company also said it increased "'demand creation' spending 27% versus relatively low spending levels last year, driven by advertising campaigns behind Nike Air, LeBron, Nike Pro and Nike+."

Separately, the company announced that it would celebrate the 25th-year anniversary of the Air Force 1 performance basketball shoe with the launch of the new Air Force 25 (AF25), available Dec. 26.

Retailing for $175, the shoe can already be seen on such players as Indiana Pacers' Jermaine O'Neal and the Phoenix Suns' Shawn Marion.