A pedestrian carries a Nike shopping bag in San Francisco, California, US, on Friday, Dec. 9, 2022.
CNN  — 

Nike’s stock jumped around 11% after the company beat analyst forecasts during its latest quarter.

The company’s sales jumped 17% from the same quarter a year prior. Its profit increased 10%, the company said Tuesday.

“Consumer demand for Nike’s portfolio of brands continues to drive strong business momentum,” Nike finance chief Matthew Friend said in a news release.

Yet Nike (NKE) is still sitting on a glut of merchandise. Nike (NKE) said Tuesday that its inventories increased 43% from a year ago. That could mean it may need to continue stepping up promotions. The company has also marked down products to clear out excess goods.

That boosted sales but squeezed its profit margin during the quarter.

Nike’s results are an encouraging sign about consumer spending during the holiday shopping season. Shoppers have been affected by higher prices.

Retail sales fell 0.6% in November from the month prior, the largest drop this year.