Amazon profit exceeds expectations to end previous slump

Amazon profit exceeds expectations to end previous slump

American online retailer Amazon has flushed away the losses it suffered in the previous two quarters with a sizable profit in its fourth quarter, but for its full fiscal year it still has to accept a loss.

Approach delivers results

Amazon's fourth quarter profit reached 214 million dollars (190 million euro), almost three times as high as analysts had forecast. Turnover was slightly lower than expected however, at 29.3 billion dollars (26 billion euro).

 

All in all, Amazon cannot really be satisfied with its performance in 2014, as it had to deal with losses in its previous 2 quarters. Still, CEO Jeff Bezos might feel empowered by Amazon's fourth quarter performance as it legitimizes his approach: he feels the company should always keep investing, to boost income which in turn will lead to a small profit.

 

Amazon's costs also rose 15 % in its fourth quarter, up to 28.7 billion dollars (25.3 billion euro), partly because the company has invested heavily in its own movie and TV series business. A 20.9 - 22.9 billion dollar (18.5 - 20.2 billion euro) turnover is expected for the first quarter of 2015.

Questions or comments? Please feel free to contact the editors


Carrefour buys stake in Showroomprivé

12/01/2018

Carrefour has obtained a 17 % minority stake in flash sale seller Showroomprivé with the intent of increasing its digital and non-food reach. Former shareholder Conforama did suffer a loss.

Will free home delivery disappear?

15/12/2017

A growing number of online orders also brings additional pressure on the logistical industry. Free home delivery can no longer be maintained according to research company ECC Köln. More flexible options should be installed.

Amazon brings its private labels to Europe

14/12/2017

After it introduced Amazon Prime to an increased number of European markets, Amazon is now bringing in its own FMCG private labels. Over the past few weeks, the online department store launched several private label products in Europe and it has plans for even more. 

Amazon Echo is now available in the Benelux

11/12/2017

Amazon announced it will ship its smart speaker Amazon Echo to another 28 countries, including Belgium and the Netherlands. Its own music streaming service will also get a local launch.

Luxury manufacturers can block retailers from selling on Amazon

07/12/2017

Luxury product manufactures can block retailers from selling their merchandise on online marketplaces like Amazon. The European Court of Justice has ruled on the matter after cosmetics manufacturer Coty filed a complaint.

Surge in mobile sales during Thanksgiving weekend

29/11/2017

During Thanksgiving weekend in the United States, which contains Black Friday and Cyber Monday, there was a big surge in mobile sales. Those two days saw a total sales figure of almost twelve billion dollar (just shy of ten billion euro).

Back to top