Nike has delivered better than expected £10.1 billion sales in the third quarter as it looked to outsprint rival Adidas.

Results from the US sportswear giant also showed a squeeze on profit margins.

Nike hosts a raft of celebrity endorsements including British tennis player Emma Raducanu and former US basketball star Michael Jordan, while being the official kit supplier to French rugby union team Toulouse.

Sales for the three months to the end of February were up 14 per cent on the same period last year and were well ahead of forecasts of £9.4billion.

The company reported a 27 per cent jump in sales in its largest market, North America, while it also saw a 17 per cent rise in the Europe, Middle East and Africa region.

John Donahoe, president and CEO, Nike, Inc, said: "Nike's strong results in the third quarter offer continued proof of the success of our Consumer Direct Acceleration strategy. Fuelled by compelling product innovation, deep relationships with consumers and a digital advantage that fuels brand momentum, our proven playbook allows us to navigate volatility as we create value and drive long-term growth."

Matthew Friend, executive vice president and chief financial officer, said: "Nike's brand distinction and strong execution continue to create separation in the marketplace. We have made tremendous progress on inventory as we position Nike for sustainable and more profitable growth."