We met and even exceeded what we said we would deliver 90 days ago.
For Q3, our revenue growth was 5%, led by double-digit growth in NIKE Direct.
50 years ago, our journey began with a dream to serve athletes, and today, we're humbled by what we've achieved and we're thrilled and excited by what's to come.
Rafael Nadal made history by becoming the first male tennis player to win 21 majors with his victory at the Australian Open, and he now stands alone at the top of the men's game.
In Greater China, it featured snowboarder Cai Xuetong, and it saw an incredible response in that geo with over 6.1 billion impressions.
Coach K has been a member of the NIKE family for nearly 30 years, and his leadership and clear set of values have meant so much to this company and to me personally.
In January, Sotheby's auctioned off 200 pairs of the Louis Vuitton Air Force 1 by Virgil Abloh and reported that it set the record for the most valuable sneaker and fashion auction ever at more than $25 million, with all proceeds going to Virgil Abloh's Post-Modern Scholarship Fund.
We expect FlyEase to be roughly $0.25 billion business by fiscal next year, with vast opportunity for even greater growth and value to come.
Also in running, the Pegasus 38 saw very strong sell-through in the quarter, continuing the Peg's lineage as one of our powerhouse franchises.
In Q3, digital revenue was up 22% on a currency-neutral basis as we continue to drive greater competitive separation, particularly through our app ecosystem.
The NIKE mobile app was up more than 50% in the quarter and overtook Nike.com on mobile for our highest share of digital demand.
Since its launch, a total of 6.7 million players from 224 countries have visited NIKELAND on Roblox.
And we plan to continue driving energy there with virtual products like LeBron 19 styles special to Roblox.
With NIKE Virtual Studios, our vision is to take our best-in-class experiences in digital and build Web 3 products and experiences to scale this community so that NIKE and our members can create, share and benefit together.
Marketplace demand continues to significantly exceed available inventory supply, with a healthy pull market across our geographies.
Across the marketplace, holiday retail sales finished strong, and spring retail sales are off to a great start, fueled by strong demand for performance men's running, Air Jordan 1, classics footwear and our apparel fleece franchises.
1 cool and No.
1 favorite brand in all 12 of our key cities around the world.
Over the past four years, we have reduced the number of wholesale accounts worldwide by more than 50% while delivering strong revenue growth through NIKE Direct and our remaining wholesale partners.
In Q3, NIKE Digital gained 3 points from the prior year and now represents 26% of our total NIKE Brand revenue.
NIKE, Inc. revenue grew 5% and 8% on a currency-neutral basis, led by 17% growth in NIKE Direct.
Wholesale returned to growth, up 1% on a currency-neutral basis.
NIKE Digital grew 22%, fueled by strong demand through our NIKE app.
NIKE-owned stores grew 14% with significant improvements in traffic during the quarter.
Gross margin increased 100 basis points versus the prior year, driven primarily by higher NIKE Direct margins due to lower markdowns, favorable foreign currency exchange rates and a higher full price mix, partially offset by increased freight and logistics costs.
SG&A grew 13% versus the prior year, primarily due to strategic technology investments, normalization of investment against brand campaigns, wage-related expenses and digital marketing investment to fuel heightened digital demand.
Our effective tax rate for the quarter was 16.4% compared to 11.4% for the same period last year.
Third quarter diluted earnings per share was $0.87.
In North America, Q3 revenue grew 9% and EBIT was flat.
NIKE Direct grew 27% versus the prior year, led by NIKE Digital delivering industry-leading growth, increasing 33% versus the prior year, driven by double-digit growth in traffic, strong growth in new members and member engagement and improvements in member buying frequency.
NIKE-owned inventory levels increased 22% versus the prior year, with in-transit inventory now representing 65% of total inventory at the end of the quarter, as transit times are now more than six weeks longer than pre-pandemic levels and two weeks longer than the same period in the prior year.
In EMEA, Q3 revenue grew 13% on a currency-neutral basis, with growth across all consumer segments, and EBIT grew 34% on a reported basis.
NIKE Direct grew 22% on a currency-neutral basis, led by growth in NIKE-owned stores of 44% as we compare to uneven store closures due to COVID-related government restrictions in the prior year.
NIKE Digital rose 11%, fueled by member-only access and app-exclusive releases and another quarter of strong double-digit growth in full price demand.
Wholesale revenue grew 10%, led by even stronger growth rates from our strategic accounts.
As a note, our business in both countries represent less than 1% of total company revenue.
In Greater China, Q3 revenue declined 8% on a currency-neutral basis, and EBIT declined 19% on a reported basis.
1 cool and No.
1 favorite brand in China, creating separation and distinction versus the competition.
Greater China delivered over $2 billion in revenue this quarter, driven by the Lunar New Year period as Nike.com saw record weekly traffic.
NIKE Direct was down 11% on a currency-neutral basis, with declines in both digital and physical retail channels.
NIKE-owned stores were down 5% and Digital declined 19% due to the ongoing supply delays that negatively impacted timing of product launches.
Q3 revenue grew 19% on a currency-neutral basis and EBIT grew 17% on a reported basis.
NIKE Direct grew 39%, led by NIKE Digital growth of 61% due to record-setting member days across a number of territories, delivering more than two and a half times the demand versus a typical week.
NIKE-owned stores grew 17% while the wholesale channel grew 9%.
Our focus on localized product and content, particularly the launch of our Kwondo 1 collaboration with K-Pop star G-Dragon demonstrated yet again our deep connection to consumers.
It was APLA's biggest hyperlocal launch ever, reaching 91 million users on social and 3.8 million entries across SNKRS and our marketplace partners.
We now expect gross margin to expand by at least 150 basis points versus the prior year as strong consumer demand continues to fuel high levels of full price realization, low markdown rates and low customer returns.
Despite the recent strengthening of the U.S. dollar, we continue to expect foreign exchange to be a 55 basis point tailwind versus the prior year.

Summary:
For Q3, our revenue growth was 5%, led by double-digit growth in NIKE Direct.
Marketplace demand continues to significantly exceed available inventory supply, with a healthy pull market across our geographies.
Third quarter diluted earnings per share was $0.87.