Amazon’s revenue continued to climb this year in the second quarter, but not quite at the rate analysts expected. The reason might be that shoppers are finally getting out of the house.
The e-commerce and tech powerhouse said Thursday that net sales in the April-June quarter climbed to $113.1 billion, up 27% from $88.9 billion in the same period last year. That missed forecasts of roughly $115 billion in sales from analysts but landed comfortably within the range of $110 billion to $116 billion, which Amazon predicted for its second quarter in April. Still, earnings per share rose to $15.12 per share, up 46.8% from $10.30 a year earlier. That beat forecasts of $12.22 in earnings per share, according to a Yahoo Finance survey of analysts.
As economies open up more, people may be more focused on activities and not shopping, said Brian Olsavsky, Amazon’s chief financial officer. Additionally, shoppers who began relying on Amazon during the depths of the pandemic may be spreading their spending around as economies begin to open up as they experienced what Olsavsky called “additional mobility.” Amazon posted revenues of over $100 billion last year for the first time in the final quarter of 2020.
The results follow, when retailers normally expect to see a slump in sales after the holidays. In April, the company said it would move its to the second quarter, rather than its usual timing in July. The event was eventually , the earliest it’s been held.
In the same quarter last year, Amazon, posting record profits even after telling investors it would spend billions to deal with the effects of COVID-19. Amazon also dealt with major obstacles in its logistics chain that led to delivery delays, and it faced high turnover in warehouses, where some workers staged walkouts in protest of Amazon’s handling of safety.