Unexpected profit for Amazon | RetailDetail

Unexpected profit for Amazon

Unexpected profit for Amazon

Amazon has unexpectedly managed to turn a 126 million dollar loss into a profit in its second quarter, while its turnover also rose 20 %. The results have caused the share price to soar on the stock market, instantly making Amazon more valuable than Walmart.

Worth more than Walmart

The online retailer had a 126 million dollar (115 million euro) loss last year, but managed to turn that around into a 92 million dollar (84 million euro) profit. Analysts had predicted a loss for this quarter, which makes it all the more surprising.

 

Turnover also grew more than expected, up 19.3 % to 23.18 billion dollars (21 billion euro). These positive results have had their impact on Amazon's share, which shot up 18 %. Amazon's total value is now 264 billion dollars (240 billion euro), which made it more valuable than Walmart, currently worth 234 billion dollars (215 billion euro).

 

Amazon's turnover grew some 20 % up until the final quarter of 2014, after which turnover growth slowed down to 15 %. That prompted the company to spend more in advertising and investments, which is clearly paying off.

 

Larger margins between cost and turnover

Amazon has now made a profit in eight of its latest twelve quarters, mainly thanks to larger margins between the growth in costs and turnover. In the past quarter, costs grew 17.4 % and turnover grew 19.9 %: the largest difference between both in more than three years.

 

Amazon predicts a third quarter turnover between 23.3 and 25.5 billion dollars (21 to 23 billion euro), while analysts now think it will reach a 23.9 billion dollar (22 billion euro) turnover. Last year, Amazon managed a 20.6 billion dollar turnover in the third quarter.

Questions or comments? Please feel free to contact the editors


Microsoft builds competitor for Amazon Go

14/06/2018

Microsoft is working on its own technology that should render checkouts in stores obsolete. The American company says it wants to be an ally for the retail sector, mostly in its struggle against Amazon Go.

Amazon bans customers who return too much

24/05/2018

Amazon is putting a stop to customers that return too many items or that “misbehave” according to the retailer: whoever crosses the line, will be banned. Dozens of customers have taken to social media to complain about this unilateral account removal.

LVMH invests millions in fashion search engine Lyst

24/05/2018

French luxury group LVMH, led by Bernard Arnault, will invest millions of dollars in Lyst once again. The luxury fashion search engine wants to expand its global expansion this way.

Amazon now delivers packages to car trunks

25/04/2018

From now on, Amazon delivers orders to the trunk of your car. The retail and technology giant has given its Prime subscribers access to get packaged delivered to the trunk of their car, without any additional costs. The service is currently limited to the United States.

Dutch Beate Uhse division not bankrupt after all

05/04/2018

German Beate Uhse’s Dutch subsidiary has not gone bankrupt after all and will continue its activities in both Belgium and the Netherlands. The company revealed the information itself after bankruptcy rumours surfaced.

Amazon often cheaper than Dutch competitors

03/04/2018

Products that are available on both Dutch web shops and Amazon.de, are cheaper at Amazon in about half the cases. Not only do Dutch stores compete with Amazon.de, which ships to the Netherlands, but there are also rumours that Amazon.nl and Amazon.be will soon become more active.