Amazon reports quarterly financial results that 'net profit is down 50% year-on-year', stock price falls
Amazon has released its financial report for the third quarter of 2021 (July 1st to September 30th, 2021). Net income was down 50% year-on-year, clearly showing the rebound in demand for nesting due to the new coronavirus infection (COVID-19).
Amazon.com, Inc. --Amazon.com Announces Third Quarter Results
Amazon Misses Q3 Expectations, Warns of'Billions' in Extra Costs Q4 --Variety
https://variety.com/2021/digital/news/amazon-q3-2021-earnings-miss-1235099669/
Total retail sales, which integrates online and physical store sales in the third quarter of 2021, increased 4% year-on-year to $ 54,876 million, related to services such as AWS and Prime Video. Sales increased 29% year-on-year to $ 55,936 million, and total sales increased 15% year-on-year to $ 110.8 billion. It is the first time in history for Amazon that service-related sales have exceeded total retail sales. Operating profit was down 22% year-on-year to $ 4,852 million, and net income was down 50% year-on-year to $ 3,156 million.
Looking at the breakdown by segment, online store sales for the same period increased 3% year-on-year to $ 49,942 million. Online store sales increased 49%, 37%, 43%, 41%, and 13% from the second quarter of 2020 to the second quarter of 2021, so global demand for nesting is gradually ending. The result shows that it is approaching. Physical store sales were $ 4,269 million, up 12% year-over-year.
On the other hand, growth was maintained in subscription services and AWS services, with subscription services up 23% year-on-year to $ 8,148 million and AWS up 39% year-on-year. The sales were 16,110 million yen (about 1,830 billion yen).
Amazon CEO Andy Jassy said the outlook for the fourth quarter was billions of dollars due to labor shortages, rising employee costs, global supply chain constraints, and rising freight and shipping charges. He said that additional costs are expected and that he is addressing new challenges as he enters the business opportunity of the holiday season.
In October 2021, Amazon announced plans to hire a total of 275,000 full-time employees and fixed-term workers worldwide as a measure for the holiday season. We are facing and are working to hire and retain employees by introducing new benefits such as a $ 3,000 hire bonus and free college tuition. ' increase.
Amazon's stall was even lower than expected, and its share price fell 4% after the announcement.
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