Digital Retail News
Amazon Profits Drop on the Back of Increased Shipping Costs
Amazon.com, Inc. has published its financial results for the third quarter ended September 30, 2019.
Quarterly shipping costs increased by 46% to $9,608 during the period, up 46% from last year, hitting profits which dropped by nearly a quarter to £2.1bn.
Summary
- Operating cash flow increased 33% to $35.3 billion for the trailing twelve months, compared with $26.6 billion for the trailing twelve months ended September 30, 2018.
- Free cash flow increased to $23.5 billion for the trailing twelve months, compared with $15.4 billion for the trailing twelve months ended September 30, 2018.
- Free cash flow less principal repayments of finance leases and financing obligations increased to $14.6 billion for the trailing twelve months, compared with $8.1 billion for the trailing twelve months ended September 30, 2018.
- Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations increased to $10.5 billion for the trailing twelve months, compared with $5.4 billion for the trailing twelve months ended September 30, 2018.
- Common shares outstanding plus shares underlying stock-based awards totaled 511 million on September 30, 2019, compared with 507 million one year ago.
- Net sales increased 24% to $70.0 billion in the third quarter, compared with $56.6 billion in third quarter 2018. Excluding the $500 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 25% compared with third quarter 2018.
- Operating income decreased to $3.2 billion in the third quarter, compared with operating income of $3.7 billion in third quarter 2018.
- Net income decreased to $2.1 billion in the third quarter, or $4.23 per diluted share, compared with net income of $2.9 billion, or $5.75 per diluted share, in third quarter 2018.
“We are ramping up to make our 25th holiday season the best ever for Prime customers — with millions of products available for free one-day delivery,” said Jeff Bezos, Amazon founder and CEO.
“Customers love the transition of Prime from two days to one day — they’ve already ordered billions of items with free one-day delivery this year. It’s a big investment, and it’s the right long-term decision for customers. And although it’s counterintuitive, the fastest delivery speeds generate the least carbon emissions because these products ship from fulfillment centers very close to the customer — it simply becomes impractical to use air or long ground routes. Huge thanks to all the teams helping deliver for customers this holiday.”
Source : Amazon
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