Amazon posted profits and sales ahead of market expectations overnight, driven by a strong retail performance in its third quarter.
For the three months ending September 30, the retail giant reported a 7% improvement in retail sales and said it expected to enjoy a strong Christmas period due to its faster shipping times and a move to stock lower-cost items.
Operating margins for Amazon’s international business jumped to 3.6% in the third quarter from 0.9% in the second quarter. While in the US, the tech giant’s margin ticked up to 5.9% from 5.6% in the previous quarter.
Amazon sales in the US rose 9% to $95.5bn (£74.06bn) in the period, while total revenues were $158.9bn (£123.2bn), compared with analysts’ average estimate of $157.20bn (£121.9bn).
Net income was $15.3bn (£11.8bn), up 55% from 2023’s $9.9bn (£7.6bn).
The upbeat results could signal a better-than-expected Christmas period for US retailers more generally, amidst fears of a slowdown in consumer confidence and spending over the festive period.
They also highlighted how Amazon has been taking the fight to Chinese competitors Shein and Temu.
Chief executive Andy Jassy said that Amazon would be earmarking higher than expected levels of capital to invest in developing new AI software, which Jassy described as “a maybe once-in-a-lifetime type of opportunity” that the giant would be pursuing “aggressively”.
Jassy and Amazon have made headlines in the last few months slashing jobs and issuing an unpopular five-day-a-week office mandate for staff.
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