Sales at ecommerce giant Amazon have surged during its second quarter despite customers remaining cautious and trading down amid the cost-of-living crisis.
Amazon posted a 10% increase in net sales during the second quarter to June 30, 2024, to reach $148bn (£116.18bn).
Operating income for the period was also up from $7.7bn (£6.04bn) in the second quarter last year to $14.7bn (£11.54bn).
Sales at Amazon Web Services (AWS) were up 19% year on year to $26.3bn (£20.68bn).
Amazon chief financial officer Brian Olsavsky said customers traded down on price where possible during the period and they are “looking for deals” as lower-priced products continue to drive demand.
Amazon also hailed the success of its latest Prime Day, which was its biggest to date.
The company launched several AI-powered features for customers including a new shopping assistant, Rufus, for US mobile customers; a new playlist generator for Amazon Music; and a new search experience for Fire TV.
Looking ahead, Amazon said its expectations are “subject to substantial uncertainty” with third-quarter sales anticipated to reach between $154bn (£121.07bn) and $158.5bn (£124.6bn).
Operating income in the next quarter is expected to be between $11.5bn (£9.04bn) and $15bn (£11.79bn), a jump from $11.2bn (£8.8bn) in the third quarter last year.
Amazon chief executive Andy Jassy said: “We’re continuing to make progress on a number of dimensions but perhaps none more so than the continued reacceleration in AWS growth.
“As companies continue to modernizs their infrastructure and move to the cloud, while also leveraging new generative AI opportunities, AWS continues to be customers’ top choice as we have much broader functionality, superior security and operational performance, a larger partner ecosystem and AI capabilities.”
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