Nike soars 14% after earnings beat estimates and the retail giant says it is getting inventory bloat under control

• Nike shares jumped as much as 14% after the company reported better-than-expected earnings
• Nike reported revenue of $13.32 billion versus estimates of $12.57 billion.

Nike Inc. shares jumped as much as 14% on Wednesday after the company reported second-quarter earnings that blasted past analysts' expectations.

Shares were trading at $117.45 at 12:10 p.m. ET, down slightly from intraday highs but still up 13%.

Nike reported revenue of $13.32 billion for the quarter ending on November 30, versus analysts' estimates of $12.57 billion, per a survey by Refinitiv. Revenue jumped 17% from $11.36 billion a year earlier as well. Earnings per share notched $0.85, compared to estimates of around $0.64

"Consumer demand for NIKE's portfolio of brands continues to drive strong business momentum in a dynamic environment," Matthew Friend, the company's Executive Vice President and CFO, said in a Tuesday statement.

Friend added: "We remain focused on what we can control, and we are on track to deliver on our operational and financial goals — setting the foundation for sustainable, profitable growth."

Nike's sale rose 17% year-over-year, as the merchandiser decreased its inventory one percentage point from Q1 2022 as well. Inventories declined from $9.7 billion in the previous quarter as the company appears to being getting its inventory bloat under control.

On the earnings call, execs said that the company is determined to reduce inventory levels, specifically through discounted retail stores. "We believe the inventory peak is behind us actions as we're taking in the marketplace are working," Nike CEO John Donahoe said.

Elsewhere, advertising and marketing costs may squeeze the company's margins. Nike saw a 10% year-over-year increase in admin and selling expenses at $4.1 billion.