Amazon shows holiday sales figures
There are a lot of eyes on Amazon, along with the other big players in the ecommerce and online marketplace sector following Christmas, to see who got the biggest slice of the shopping pie. So, we have decided to take a look at the different figures and what they mean for the global business.
In the fourth quarter, Amazon saw a 22% increase in net sales, with them coming in at $43.7 billion, compared to $35.7 billion during Q4 2015. For most companies, a 22% year on year rise in quarterly sales would be fantastic news, however this $43.7 billion fell short of the $44.68 billion expected by analysts, which caused the firm’s share price to slide 3% initially.
Looking at why this revenue figure fell short of what some commentators were expecting, Amazon CFO, Brian Olsavsky, said that revenues would have been up 24% had it not been for an $800 million negative impact of foreign exchange rates.
Q4 operating income came in at $1.3 billion, which was a 13% increase on the $1.1 billion achieved in the same period the previous year.
For the full year, Amazon were able to reveal some truly impressive figures, with their net sales coming in at $136 billion, up 27% from the $107 billion achieved the previous year. The company also noted that unfavourable changes in foreign exchange rates impacted their net sales by $550 million, which would have been an extra percentage point growth.
Jeff Bezos, Amazon’s founder and CEO, said: “Our Prime team’s customer obsession kept them busy in 2016. Prime members can now choose from over 50 million items with free two-day shipping — up 73% since 2015. Prime Video is now available in more than 200 countries and territories.
“Prime Now added 18 new cities, which means millions more members now get one and two hour delivery. New benefits were also added to the list, like Prime Reading, Audible Channels for Prime, Twitch Prime and more. And customers noticed — tens of millions of new paid members joined the program in just this past year.”
As is common with end of year earnings releases, Amazon released a long list of operational highlights from the previous twelve months. They announced that in 2016, there were over 100,000 sellers who sold over $100,000 over Amazon, also Prime Members doubled the amount of video, music and reading activities across the Amazon services across the year.
Dominion holds Amazon in its Global Trends Managed Fund.
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