Amazon.com Posts $7 Million Loss in Q2

AmazonSEATTLE-Rising costs offset significant gains in sales to drive Amazon.com to a $7 million net loss in its second quarter, as opposed to net income of $7 million in the second quarter of last year.

Total operating expenses in dollars were up 36.3 percent in the quarter, which ended on June 30. As a percentage of sales, operating expenses gained 288 basis points to finish the quarter at 28.1 percent. Most of the expenses gains occurred in fulfillment and technology and content, which experienced increases of 35.5 percent and 46.6 percent, respectively.

Net sales jumped 22.4 percent to $15.7 billion, including an increase of 18.2 percent in product sales. Jeff Bezos, Amazon's founder and CEO, said digital products such as the Kindle, Kindle Fire HD and their accessories, and digital content led the way on the top line.

Amazon said it expects third-quarter net sales to grow by between 12 and 24 percent, finishing the quarter at between $15.45 billion and $17.15 billion. The company's operating loss is anticipated at between $65 million and $440 million.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN May digital issue

    HFN's DIGITAL EDITION

    May 2017


    COVER STORY: HFN Turns 90

    We commemorate HFN's 90th anniversary by paying tribute to the iconic retailer and supplier brands--and the people--that have helped the industry flourish, then and now.


    ALSO IN THIS ISSUE:

    • Up & Coming Leaders - The home industry is in capable and visionary hands as this year’s 40 Under 40 list attests. Today’s young leaders span all disciplines and varied levels of operation.
    • Omnichannel Retailing - In the Mobile App World, Time is Money