Nike Rises After Sales Beat: As the sneaker and apparel manufacturer speeds up a multi-year cost-cutting plan in response to lower demand, Nike Inc. announced stronger-than-anticipated revenues.

Sales in North America and Greater China were better than anticipated, contributing to the world’s largest sportswear retailer’s revenue of $12.4 billion for the quarter ended Feb. 29, which was higher than analysts’ expectations.

The most important growth market for Nike, China, saw a 4.5% increase in sales during the quarter. Sales in North America increased by 3.2% to $5.07 billion.

In light of declining revenues, CEO John Donahoe unveiled a proposal in December to reorganize the company in order to save $2 billion in expenditures over the following three years. The strategy includes laying off 2% of Nike’s worldwide staff over two waves, as announced in February.

“To drive Nike’s next chapter of growth,” Donahoe stated.

After a glut of goods last year, management has also been trying to clear out the shelves of older items to make way for newer ones. For the quarter, inventories dropped by 13%, totaling $7.7 billion—a steeper drop than what Wall Street had anticipated.

In an effort to increase sales, Nike has increased its advertising budget by 10% year-over-year, spending $1 billion on marketing during the quarter.

During Thursday’s after-market trade in New York, shares increased by 1.1% at 4:30 p.m. The stock had lost 7.1% of its value so far this year as of the end of the trading day.