(Reuters) -Nike on Thursday beat Wall Street estimates for quarterly revenue as the world's largest sportswear maker benefited from a recovery in China but margins remained under pressure due to higher costs and markdowns.
The company reported a 16% jump in Greater China sales following the reversal of the rigid zero-COVID-19 policy. Sales in the region had declined in the first three quarters of its fiscal 2023.
Removal of lockdowns in China's major cities helped the company as wealthy shoppers in the region snapped up its popular shoes including Invincible 3 and Jordan Mid-1.
Sales rose 5% in its largest market of North America, but that was the slowest in four quarters as demand from U.S. wholesalers wanes due to still-high inflation.
Retailers have started to cut back on orders and become more prudent in placing newer orders due to a drop in discretionary spending among shoppers.
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, which fell 140 basis points to 43.6%.
Nike's earnings per share came in at 66 cents, missing estimates of 67 cents.
Shares of the company were down 1.2% in extended trading.
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.
(Reporting by Granth Vanaik and Ananya Mariam Rajesh in Bengaluru; Editing by Sriraj Kalluvila)
