Nike stock jumps after earnings and revenue top expectations

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Nike stock jumps after earnings and revenue top expectations
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Nike earnings and revenue top estimates, but inventories and costs rise

Nike's earnings and revenue easily beat Wall Street's expectations, but rising inventories squeezed the company's margins.

Here's how Nike did in its second fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:vs. $12.57 billion expected Inventories were up 43% to $9.3 billion in the quarter, compared to last year. The merchandise glut led to aggressive markdowns, which helped reduce Nike's gross margin to 42.9% from 45.9% a year ago.

Nike's sales in China, its third biggest market by revenue, dropped by 3% compared to last year, continuing a trend the retailer contending with as the country continues to deal with lingering Covid lockdowns and a slowdown in retail spending.

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