Amazon predicts slower sales growth as Covid boost eases

Amazon predicts slower sales growth as Covid boost eases
Earlier in the Covid pandemic Amazon posted record profits, signed up more than 200 million customers to its Prime service, and recruited more than 500,000 workers to keep up with surging demand.

But vaccine rollouts and easing of restrictions have led some consumers to venture out to stores, while also using click-and-collect services, in competition with the speedy delivery of online orders provided by Amazon and its peers.

image captionAndy Jassy took over the top job at Amazon on 5 July

Amazon s net sales rose to $113.08bn in the second quarter to 30 June from $88.91bn in the same period a year earlier. Analysts on average had expected $115.20bn.

The world s biggest online retailer had moved its annual marketing bonanza, Prime Day, to June this year, hoping to sell more goods before shoppers went on holiday.

It said the event was the biggest two-day sales period ever for merchants on its platform.

But in the second quarter analysts have seen signs of slowing demand.

North America, Amazon s largest market, saw sales increase 22% in the second quarter, versus 43% in the same period a year earlier.

But profit rose 48% to $7.8bn, the second-largest quarterly result Amazon has ever announced.

image captionJeff Bezos stepped back from the chief executive role on 5 July

The retail giant s founder Jeff Bezos stepped down as chief executive on 5 July, becoming executive chair of Amazon s board.

Andy Jassy took on role, after previously being in charge of Amazon s cloud computing division, Amazon Web Services (AWS).

In the second quarter AWS was a bright spot, seeing revenue rise by 37% to $14.8bn.

Mr Jassy said: "Over the past 18 months, our consumer business has been called on to deliver an unprecedented number of items, including PPE [personal protective equipment], food, and other products that helped communities around the world cope with the difficult circumstances of the pandemic.

"At the same time, AWS has helped so many businesses and governments maintain business continuity, and we ve seen AWS growth reaccelerate as more companies bring forward plans to transform their businesses and move to the cloud."
News Topics :
Similar Articles :
The e commerce giant on Wednesday posted US$113.1 billion in revenue during the three months ended June 30, an increase of 27 from the same period in the prior year but...
Top Stories
Amazon founder Jeff Bezos will step down from his role as chief executive later this year and transition to the role of executive chair, the company said Tuesday. He will...
In this Dec. 5, 2019, file photo, AWS CEO Andy Jassy, discusses a new initiative with the NFL during AWS re Invent 2019 in Las Vegas. Isaac Brekken/AP Images for NFL,...
Jeff Bezos is stepping down as Amazon boss later this year and handing the reins to a company executive few of the public will recognise. However, Andy Jassy, 53, is...
Amazon founder Jeff Bezos on Monday will title to Andy Jassy , ending a more than two decade run leading the company through its evolution from online bookseller to US$1.75...