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Even as persistent inflation pinches household budgets, customers – particularly those with higher incomes – have snapped up Nike (NYSE:NKE)’s popular shoes including Invincible 3 and Jordan Mid-1.
Nike reported a 5% jump in sales in its largest market of North America, while they jumped 16% in China following the easing of pandemic-induced restrictions.
The company’s move to offer more discounts to get rid of excess apparel and footwear inventory drew more customers to its stores.
However, this hurt margins with the company reporting a 140 basis points fall to 43.6%, compared to 45% a year earlier.
The company’s fourth-quarter revenue rose to $12.83 billion from $12.23 billion a year earlier. Analysts had expected $12.59 billion, according to Refinitiv data.
Nike’s shares were marginally down in extended trading.
