Nike reported quarterly earnings that beat estimates but North America sales came up short and tariffs weighed on margins.

For the second quarter, the company earned 70 cents per share as overall revenue grew 10% to $10.33 billion and Nike brand revenue rose 12% to $9.8 billion. Analysts had expected earnings of 58 cents per share on revenue of $10.09 billion.

But North America sales climbed 5.3% to $3.98 billion but missed estimates of $4 billion. Gross margins rose 20 basis points to 44%, slightly less than expectations for 44.1%.

On news of the earnings, Nike shares fell 2% to $99.06 in the extended session Thursday after hitting an all-time intraday high of $101.15 earlier in the day.

“Nike delivered another strong quarter of accelerating, high-quality growth, driven by strategic and targeted investment in our digital transformation,” CFO Andy Campion said in a news release. “As we deliver a relentless flow of innovation and scale Nike’s digital advantage, we are positioned for even greater competitive separation and long-term shareholder value creation.”

Nike’s revenue growth was driven by the namesake brand while the Jordan brand had its first ever billion-dollar quarter, reflecting a spike in interest in the basketball-focused label, including among women and in markets outside the U.S.

Revenues jumped at each of Nike’s four geographical divisions, led by China, where revenues rose 20% to $3.98 billion.

Digital sales rose 38% overall, surging more than 70% in North America on Black Friday. “Nike has been investing more recently in boosting its online operations, which include its mobile apps, such as SNKRS, and driving sales at Nike stores,” CNBC said.

The company attributed the increase in gross margin to higher average selling prices and margin expansion in NIKE Direct and Converse, “partially offset by impacts from higher product costs, primarily due to incremental tariffs in North America.”

While the Trump administration canceled a round of China tariffs that was due to go into effect on Dec. 15, a prior set of tariffs imposed on Sept. 1 included footwear.

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