Nike reported good earnings which significantly beat the street’s expectations, suggesting that the company’s logistics-related issues we highlighted in our last report appear to be behind it. The company reported EPS of 0.85 vs. estimates of 0.65 and revenues of $13.3B vs. estimates of $12.57B. Lower inventories ($9.3B vs $9.7B in Q2) suggest that the company’s strategy of selling direct to consumers is bearing fruit. We retain a buy rating for Nike.