Amazon sales grow 37%, beating expectations

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On Thursday, Amazon announced its financial results for the third quarter of this year, which were better than expected, with a rise in profits, and a 37 percent growth in revenue.

Amazon said: The sales in the fourth quarter will range between $ 112 billion and $ 121 billion, achieving growth of between 28 percent and 38 percent from the previous year. Analysts had expected revenue of $ 112.3 billion.

The company expects operating income of between $ 1 billion and $ 4.5 billion, assuming about $ 4.0 billion in costs are related to the novel coronavirus (COVID-19) COVID-19. This is a higher number than last quarter, when Amazon said it would spend more than $ 2 billion on coronavirus-related measures.

Amazon chief financial officer (Brian Olsavsky) said in a call with analysts: The bulk of these costs stem from “persistent headwinds of productivity” in its warehouses, and this includes: implementing social distancing rules, extended rest periods for workers, and other steps “to ensure that Our employees are safe and far between. ” The costs also include investments in cleaning improvement and testing capabilities.

Even so, Amazon remains one of the biggest beneficiaries of the pandemic, as consumers flock to the site to get basic goods, groceries, and household items. The cost of shipping these goods to customers increased during the third quarter, with expenses increasing by 57 percent from the previous year to $ 15.1 billion.

And Amazon is expected to face greater demand as the holiday season approaches, as shoppers are more likely to make the bulk of purchasing gifts online rather than going to stores.

“We see more customers shopping early for holiday gifts, and it’s just one of the signs that this will be an unprecedented holiday season,” Amazon CEO Jeff Bezos said in a statement.

Bezos also promoted the latest job creation at Amazon, and the treatment of warehouse workers. He cited Amazon’s minimum wage of $ 15 and challenged other big employers to “take the jump to $ 15.”

Amazon is one of the few companies that has continued to increase its staff numbers amid a wider economic slowdown due to the coronavirus. The company now has more than 1.12 million full-time employees worldwide, an increase of 50 percent year-on-year. This number does not include Amazon’s network of contractors and temporary workers.

Amazon Web Services ‘cloud computing unit posted sales of $ 11.6 billion for the quarter, up 29 percent and in line with analysts’ estimates, according to FactSet. Operating income in this segment of $ 3.54 billion exceeded estimates of $ 3.45 billion.

The company’s “other” category, which mainly consists of its advertising activity, saw revenue increase 51 percent to $ 5.4 billion. Subscription services, including: Revenue from Prime membership, rose 33 percent to $ 6.58 billion.

Sales from outside merchants grew 55 percent, once again outperforming first-party businesses from Amazon, which increased sales by 38 percent. Sales were down 10 percent in Amazon’s retail unit, which includes Whole Foods Market.





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