Amazon Goes from Red to Black in Q3
Posted on October 23, 2015 by
SEATTLE-Thanks to strong gains in sales and gross margin, Amazon.com posted third-quarter net income of $79 million, compared to a net loss of $437 million in last year’s third quarter.
Net sales in the quarter, which ended on Sept. 30, jumped 23.2 percent to $25.4 billion. In a conference call to financial analysts, Brian Olsavsky, senior vice president and CFO, said revenue in Amazon’s North America segment grew 28 percent to $15 billion, and the Amazon web services segment skyrocketed by 78 percent to $2.1 billion.
Gross margin made a 501-basis-point gain to 33.9 percent. Operating expenses rose 26.2 percent in dollars and 76 basis points as a percentage of sales, to 32.3 percent.
Olsavsky said Amazon is anticipating a fourth-quarter revenue gain of from 14 percent to 25 percent. “We remain heads down, focused on driving a better customer experience through price, selection and convenience,” he said. “We believe putting customers first is the only reliable way to create lasting value for shareholders.”
Amazon finished 15th on HFN’s list of the top 50 home furnishings retailers, with $3 billion in sales of home products in 2014, or 27.1 percent ahead of 2013 home sales.