SEATTLE-Rising costs offset significant gains in sales to drive Amazon.com to a $7 million net loss in its second quarter, as opposed to net income of $7 million in the second quarter of last year.
Total operating expenses in dollars were up 36.3 percent in the quarter, which ended on June 30. As a percentage of sales, operating expenses gained 288 basis points to finish the quarter at 28.1 percent. Most of the expenses gains occurred in fulfillment and technology and content, which experienced increases of 35.5 percent and 46.6 percent, respectively.
Net sales jumped 22.4 percent to $15.7 billion, including an increase of 18.2 percent in product sales. Jeff Bezos, Amazon’s founder and CEO, said digital products such as the Kindle, Kindle Fire HD and their accessories, and digital content led the way on the top line.
Amazon said it expects third-quarter net sales to grow by between 12 and 24 percent, finishing the quarter at between $15.45 billion and $17.15 billion. The company’s operating loss is anticipated at between $65 million and $440 million.