Amazon.com Net Off 7.7 Percent in Q2
SEATTLE-While it continues "the fastest growth we've seen in over a decade," in the words of founder and CEO Jeff Bezos, Amazon.com's bottom took a 7.7 percent hit in its fiscal second quarter, totaling $191 million.
The web retailer's net sales rose an impressive 51 percent, to $9.9 billion, in the quarter, which ended on June 30. Net sales rose 51 percent both in its North American and international segments. Bezos cited low prices, expanding selection (in particular with Kindle devices), fast delivery and innovation as the prime sales drivers in the quarter.
However, increases of 52 percent in cost of sales, 62 percent in fulfillment costs and 71 percent in expenses for technology and content combined to slim down Amazon's net profit.
Amazon said it expects third-quarter net sales to finish at between $10.3 billion and $11.1 billion, up from 36 percent to 47 percent over last year's third quarter.