Nike Inc.

Reebok International Ltd agreed to settle a lawsuit by rival Nike Inc, and will stop selling New York Jets football apparel with the name of the team's popular new quarterback, Tim Tebow.

According to settlement papers made public on Tuesday, Reebok will halt the sale of Jets-related apparel bearing the Tebow name that was distributed last month, and offer to buy apparel already shipped to retailers.

Nike sued Reebok on 27 March, six days after the Jets' trade for Tebow with the Denver Broncos sparked a rush to buy green Jets jerseys and T-shirts with Tebow's name.

Nike Inc. reported an 18 percent rise in fiscal-second-quarter sales, but its earnings gain was slighter as higher costs continued to hurt margins.

The sporting-goods maker has posted improved results for more than a year despite the economic uncertainty in many of its markets. Nike benefits from its broadly diverse offerings that aren't tied to one market, price point or consumer demographic. Also, product launches and new innovation features, such as the Nike Free running line and Lunar shoe cushioning, have spurred sales.

Nike Inc. named Jim Calhoun, a Levi Strauss & Co. executive, as CEO of the Hurley brand, which focuses on sports apparel for surfing and skateboarding for young consumers.

Calhoun, 43 years old, had worked at the jeans maker since 2008 as executive vice president and president of the Dockers brand.

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Nike Inc. executives said the company will begin to raise prices on a broad variety of products in an effort to offset rising costs.

The athletic apparel maker, which posted a 5.2 percent increase in its fiscal third-quarter earnings, said because of rising oil, cotton, labour and air-freight costs, its gross margins will continue to lag in the near team. Nike executives, on a Thursday conference call, said the price increases won't begin to mitigate that margin pressure until next fiscal year.