Nike beats revenue estimates on strong demand for sneakers

Nike Inc beat analysts' estimates for third-quarter revenue on Tuesday, helped by strong demand for its sneakers such as Jordan Retro in North America and Europe.

The world's largest sportswear maker's shares rose about 5% in extended trading.

Nike has benefited from higher sales of its franchises such as Jordan and LeBron as consumers snap up newer launches helping grow its market share, while rival Adidas struggles with its split with Kanye West and the German company is expected to post its first annual loss in three decades this year.

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Nike has also seen a boost to sales from consumers especially at the higher end of the income rung who have shrugged off a hit from stubbornly high inflation, helping the company maintain a pandemic-induced boom in demand for athletic wear.

The company reported a 27% jump in sales in its largest market, North America, while it saw a 17% rise in the Europe, Middle East and Africa region.

Nike's revenue rose to $12.39 billion in the third quarter from $10.87 billion a year earlier. Analysts had expected $11.47 billion, according to IBES data from Refinitiv.