Amazon Predicts Slower Sales Growth.
Amazon predicts slower sales growth as Covid boost eases. Customers turned to Amazon and other online platforms during the Covid crisis, leading to record profits for the US giant.
But Amazon’s breakneck growth is beginning to level as customers start to return to bricks and mortar shops. Revenue climbed 27% to $113bn (£81bn) in its second quarter, but this missed analysts’ expectations.
Amazon shares fell more than 7% in after-hours trade.
Earlier in the Covid pandemic Amazon posted record profits, signed up more than 200 million customers to its Prime service, and recruited more than 500,000 workers to keep up with surging demand.
But vaccine rollouts and easing of restrictions have led some consumers to venture out to stores, while also using click-and-collect services, in competition with the speedy delivery of online orders provided by Amazon and its peers.
Amazon’s net sales rose to $113.08bn in the second quarter to 30 June from $88.91bn in the same period a year earlier. Analysts on average had expected $115.20bn.
The world’s biggest online retailer had moved its annual marketing bonanza, Prime Day, to June this year, hoping to sell more goods before shoppers went on holiday.
It said the event was the biggest two-day sales period ever for merchants on its platform.
But in the second quarter analysts have seen signs of slowing demand.
North America, Amazon’s largest market, saw sales increase 22% in the second quarter, versus 43% in the same period a year earlier.
But profit rose 48% to $7.8bn, the second-largest quarterly result Amazon has ever announced.