PORTLAND, Ore. — Tiger Woods' situation may be worsening, but his key sponsor sees brighter days ahead for its business.

Nike Inc., the world's largest athletic shoe and clothing company, said its earnings dipped because of a sales decline in its fiscal second quarter. But company leaders said they are seeing hopeful signs of recovery and consumer sentiment around the world after several tough quarters.

Nike said its orders for goods to be delivered through the early spring were up 4 percent — benefiting from the weaker dollar and with significant growth in Western Europe, China and emerging markets.

In the second quarter, Nike's profit fell 4 percent to $375.4 million, or 76 cents per share. Tight inventory and cost controls helped it withstand an 8 percent decline in revenue to $4.4 billion.

The results came in slightly better than expected: analysts polled by Thomson Reuters expected the company to earn 71 cents per share for the quarter on revenue of $4.4 billion

Nike leaders were also bullish on the 2010 World Cup and several new products on the horizon.

"The strength of the Nike brand remains in a very enviable position," Nike Brand President Charlie Denson said.

The World Cup, held every 4 years, accounts for some of its potential growth — both for the Nike brand and the Umbro PLC business, which it acquired 2007. Nike executives said the company would be delivering "unprecedented intensity" in its marketing.

The company also said it would be launching "Fresh Air" in the spring, updating the look and performance of its Nike Air system.

The quarter ended before the scandal surrounding Woods erupted, but Nike executives remained positive on the golfer's future with the company.