Amazon.com Q2 Net Loss Reached $126 Million
July 25, 2014,
SEATTLE-Substantial increases in expenses offset a significant gain in sales to send Amazon.com's net loss to $126 million in its fiscal second quarter, compared to a net loss of $7 million in the second quarter of last year.
Total operating expenses jumped 23.9 percent in dollars and 57 basis points as a percentage of sales, to 100.1 percent. Gross margin fell 210 basis points to 69.3 percent. Interest expense rose 36.4 percent, and Amazon increased its provision for income taxes to $94 million from $13 million in last year's second quarter.
Net sales in the quarter, which ended on June 30, totaled $19.3 billion, up 23.3 percent. This included a 19.6 percent gain in product sales.
For the third quarter, Amazon said it expects net sales to total between $19.7 billion and $21.5 billion, or 15 to 26 percent ahead of last year's third quarter. Its operating loss should be between $410 million and $810 million, compared to an operating loss of $25 million for the third quarter of 2013.