Strong demand for its sneakers - like Jordan Retro and newer franchises - helped grow market share.
The sportswear giant posted revenue of almost $12.4 billion in the third quarter - well above analyst forecasts.
However, its shares fell 2% in extended U.S. trading.
Investors were dismayed after the company said it expected this year's gross margin to fall 250 basis points.
Nike said it faced pressure from a strong U.S. dollar, higher freight costs and efforts to get rid of excess inventory through steep discounts.
Nike said its apparel inventory fell in the third quarter.
It expects to end fiscal 2023 with what it called a "healthy" level of goods in stock.
Sales in Greater China fell about 8%, though analysts say it's doing better there than arch-rival Adidas.
Nike now expects reported revenue for the full year to rise in the high-single-digit range, slightly higher than previously forecast.
