Direct sales for Nike were US$4.6 billion in the period, up 15% on a reported basis, while Nike brand digital sales increased by 19%, led by 33% growth in North America as well as double-digit growth in the APLA and EMEA regions but partially offset by declines in Greater China.

Wholesale revenues declined by 1% on a reported basis, with growth in EMEA and APLA offset by declines in North America and Greater China.

Gross margin increased 100 basis points to 46.6%, which the company says was driven by margin expansion in the Nike Direct business and lower markdowns, changes in foreign currency exchange rates and a higher mix of full-price sales, partially offset by lower full-price product margins largely due to increased freight and logistics costs.

Inventories for the company were US$7.7 billion, up 15% compared to the same period in 2021, driven by elevated in-transit inventories due to extended lead times from ongoing supply chain disruptions, partially offset by strong consumer demand during the quarter.

“Our third quarter results demonstrate Nike’s ability to navigate through volatility, while continuing to serve consumers directly and digitally, at scale,” said Matt Friend, Executive Vice President and Chief Financial Officer at Nike.

“Marketplace demand continues to significantly exceed available inventory supply, with a healthy pull market across our geographies.”