Amazon.com sales up 23% to $35.7 billion in Q1 2017

May 01, 2017 - United States Of America

Amazon.com's net sales increased 23 per cent to $35.7 billion in the first quarter of 2017, compared with $29.1 billion during the same period last year. Excluding the $492 million unfavourable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 24 per cent compared with first quarter 2016.

Operating cash flow of Amazon.com increased 53 per cent to $17.6 billion for the trailing twelve months, compared with $11.6 billion for the trailing twelve months ended March 31, 2016. Free cash flow increased to $10.2 billion for the trailing twelve months, compared with $6.7 billion for the trailing twelve months ended March 31, 2016.

Operating income decreased 6 per cent to $1 billion in the first quarter, compared with operating income of $1.1 billion in first quarter 2016. Net income was $724 million in the first quarter, or $1.48 per diluted share, compared with net income of $513 million, or $1.07 per diluted share, in first quarter 2016.

"Our India team is moving fast and delivering for customers and sellers. The team has increased Prime selection by 75 per cent since launching the program nine months ago, increased fulfillment capacity for sellers by 26 per cent already this year, announced 18 Indian Original TV series, and just last week introduced a Fire TV Stick optimised for Indian customers with integrated voice search in English and Hindi," said Jeff Bezos, Amazon founder and CEO.

"We are grateful that customers are responding — Amazon.in is the most visited and the fastest growing marketplace in India. It is still Day 1 for e-commerce in India, and I assure you that we will keep investing in technology and infrastructure while working hard to invent on behalf of our customers and small and medium businesses in India," added Bezos.

Net sales are expected to be between $35.25 billion and $37.75 billion, or to grow between 16 per cent and 24 per cent in the second quarter of 2017 compared with second quarter 2016. This guidance anticipates an unfavorable impact of approximately $720 million or 240 basis points from foreign exchange rates. Operating income is expected to be between $425 million and $1.075 billion in this quarter, compared with $1.3 billion in second quarter 2016. (KD)