Nike's Q3 earnings exceed expectations despite inventory challenges.

Nike's Q3 earnings and revenue beat Wall Street's expectations, but bloated inventory and weak sales in China continue to weigh on its margins. Gross margins were down to 43.3% due to higher markdowns and promotions used to liquidate inventory. Nike's direct-to-consumer sales were up 17% to $5.3 billion, and digital sales jumped 20%. Sales in North America were up 27%, and in Europe, Middle East and Africa, revenue jumped 17%. However, sales in China were down 8% to $1.99 billion, despite the end of China's zero-Covid policy.