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Amazon.com Inc on Thursday reported a decrease in quarterly net income on foreign exchange headwinds, but noted a rise in sales.
Shares in Amazon.com closed down 4.1% at $110.96 in New York on Thursday. In after-hours trading, the stock sank 16%.
The Seattle, Washington-based e-commerce company reported that net income decreased 9.4% to $2.87 billion in the third quarter that ended September 30, compared to $3.16 billion a year before.
The company noted a negative impact from foreign exchange rates in the quarter.
In sales, it reported an increase of 15% to $127.1 billion in the third quarter, compared to $110.8 billion in the same period a year earlier.
Amazon noted that the North American segment increased 20% year-over-year to $78.8 billion, whereas its international segment sales decreased 5% year-over-year to $27.7 billion.
Customer response to big Amazon sales events in the past four months has been "quite positive" and "it's clear that particularly during these uncertain economic times, customers appreciate Amazon's continued focus on value and convenience," said Amazon Chief Executive Andy Jassy.
Looking ahead, Amazon expects net sales for the fourth quarter are expected to be between $140.0 billion and $148.0 billion or to grow between 2% and 8% compared with the fourth quarter of 2021.
Further, operating income is expected to be between $0 and $4.0 billion, compared with $3.5 billion in the fourth quarter a year before.
"There is obviously a lot happening in the macroeconomic environment, and we'll balance our investments to be more
streamlined without compromising our key long-term, strategic bets. What won't change is our maniacal focus on the customer experience, and we feel confident that we're ready to deliver a great experience for customers this holiday shopping season," Andy Jassy continued.
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