American e-commerce firm Amazon clocks $111 bn quarterly sales

03 Nov '21

2 min read

Pic: Amazon

Amazon, an American technology company which is also engaged in online apparel retailing, has reported its third quarter (Q3) FY21 sales of $$110.8 billion, a 15 per cent growth, compared to the sales of $96.1 billion in the corresponding period of 2020. However, net income for the three-month period slipped to $3.1 billion (Q3 FY20: $6.3 billion).

“We’ve always said that when confronted with the choice between optimising for short-term profits versus what’s best for customers over the long term, we will choose the latter—and you can see that during every phase of this pandemic,” Andy Jassy, Amazon CEO, said in a press release.

During the quarter ended on September 30, 2021, US e-commerce giant’s operating income dropped to $4.8 billion ($6.2 billion), while operating expenses totalled to $105.9 billion ($89.9 billion).

By segment, sales from North America in Q3 FY21 rose 10 per cent to $65.5 billion ($59.4 billion), while international sales increased accelerated 16 per cent to $29.1 billion ($25.2 billion).

In its outlook for the upcoming quarter, Amazon said that it anticipates sales to be between $130.0 billion and $140.0 billion, up 4-12 per cent from Q4 FY20. Moreover, operating income is expected to be between $0 billion and $3.0 billion, compared to $6.9 billion in the same period of 2020.

“In the fourth quarter, we expect to incur several billion dollars of additional costs in our consumer business as we manage through labour supply shortages, increased wage costs, global supply chain issues, and increased freight and shipping costs—all while doing whatever it takes to minimize the impact on customers and selling partners this holiday season. It’ll be expensive for us in the short term, but it’s the right prioritisation for our customers and partners,” Jassy concluded.

Fibre2Fashion News Desk (JL)

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