Amazon posts sales growth in Q3
Amazon is buoyant about its future offerings for customers. So said Andy Jassy, Amazon president and CEO in releasing the retailer’s Q3 results.
“As we get into the holiday season, we’re excited about what we have in store for customers,” Jassy said. “We kicked off the holiday season with our biggest-ever Prime Big Deal Days and the launch of an all-new Kindle lineup that is significantly outperforming our expectations; and there’s so much more coming, from tens of millions of deals, to our NFL Black Friday game and Election Day coverage with Brian Williams on Prime Video, to over 100 new cloud infrastructure and AI capabilities that we’ll share at AWS re:Invent the week after Thanksgiving.”
Amazon’s net sales increased 11% to $158.9 billion in the third quarter, compared with $143.1 billion in the prior year period. Excluding the $.2 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 11% compared with the third quarter 2023.
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- Amazon’s North America segment sales increased 9% year-over-year to $95.5 billion.
- Amazon’s international segment sales increased 12% year-over-year to $35.9 billion.
- Amazon’s AWS segment sales increased 19% year-over-year to $27.5 billion.
The company’s operating income increased to $17.4 billion in the third quarter, compared with $11.2 billion in third quarter 2023.
The retailer’s North America segment operating income was $5.7 billion, compared with operating income of $4.3 billion in the third quarter 2023.
Amazon’s international segment operating income was $1.3 billion, compared with an operating loss of $0.1 billion in third quarter 2023.
Amazon’s AWS segment operating income was $10.4 billion, compared with operating income of $7 billion in the prior year period.
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Amazon’s net income increased to $15.3 billion in the third quarter, or $1.43 per diluted share, compared with $9.9 billion, or 94 cents per diluted share, in the prior year period.
The retailer’s operating cash flow increased 57% to $112.7 billion for the trailing 12 months, compared with $71.7 billion for the trailing 12 months ended Sept. 30, 2023.
Amazon expects net sales in the fourth quarter to be between $181.5 billion and $188.5 billion, or to grow between 7% and 11% compared with fourth quarter 2023. This guidance anticipates an unfavorable impact of approximately 10 basis points from foreign exchange rates.
Amazon expects operating income in the fourth quarter to be between $16 billion and $20 billion, compared with $13.2 billion in the fourth quarter 2023.