PORTLAND, United States — Nike Inc. promoted Eric Sprunk to chief operating officer and said Charlie Denson, president of the company's flagship brand, will retire next year.

Sprunk, currently executive vice president of merchandising and product, will lead all manufacturing, sourcing and information-technology for the company in the new role, Beaverton, Oregon-based Nike said today in a statement.

Nike has been working to improve its profitability amid higher costs for labor and materials while also trying to reignite sales growth in China.

Trevor Edwards, currently executive vice president of brand and category management, will succeed Denson as Nike brand president.

Nike fell 1.6 percent to $60.78 at the close in New York. The shares have gained 18 percent this year, compared with an 11 percent advance for the Standard & Poor’s 500 Index.

By: Kevin Orland; Editor: Robin Ajello