What a distinction a 12 months could make. Roughly one 12 months after pandemic-fueled shopping for spree pushed Amazon earnings to , the retail large’s development has now stalled to its slowest charge in additional than 20 years.
The firm $116.4 billion in gross sales for the primary quarter of 2021, a rise of simply 7 % from final 12 months. That stands in stark distinction to the 44 % soar it noticed this time final 12 months. It’s additionally the slowest single-quarter development the corporate has seen since 2001, CNBC. Amazon misplaced $3.8 billion this quarter, its first loss since 2015.
The firm attributed the slowdown to numerous elements, together with results of the pandemic and the struggle in Ukraine (one thing many tech firms have cited in latest earnings studies). The firm’s in electrical car-marker Rivian additionally accounted for among the hit, as the corporate misplaced greater than $7 billion on its funding within the firm, whose inventory amid manufacturing delays.
The report isn’t the primary signal that Amazon has been struggling to show its characteristically huge earnings. The firm just lately raised the worth for the primary time since 2018, citing wage hikes for staff and growing prices of transportation. The firm additionally hiked costs for sellers by 5 %.
The firm has additionally been coping with a wave of organizing at its warehouses across the nation, regardless of in anti-union consultants. Notably, Amazon CEO Andy Jassy stated one of many firm’s priorities could be growing “productivity” at achievement facilities. “Today, as we’re no longer chasing physical or staffing capacity, our teams are squarely focused on improving productivity and cost efficiencies throughout our fulfillment network.”
Amazon additionally confirmed that its annual procuring bonanza Prime Day is ready for July, although it didn’t present a precise date.
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