What a distinction a yr could make. Roughly one yr after pandemic-fueled shopping for spree pushed Amazon earnings to new highs, the retail big’s progress has now stalled to its slowest price in additional than 20 years.
The firm reported $116.4 billion in gross sales for the primary quarter of 2021, a rise of simply 7 p.c from final yr. That stands in stark distinction to the 44 p.c soar it noticed this time final yr. It’s additionally the slowest single-quarter progress the corporate has seen since 2001, in accordance with CNBC. Amazon misplaced $3.8 billion this quarter, its first loss since 2015.
The firm attributed the slowdown to a variety of components, together with results of the pandemic and the warfare in Ukraine (one thing many tech firms have cited in latest earnings studies). The firm’s stake in electrical car-marker Rivian additionally accounted for a number of the hit, as the corporate misplaced greater than $7 billion on its funding within the firm, whose inventory has dipped amid manufacturing delays.
The report isn’t the primary signal that Amazon has been struggling to show its characteristically huge earnings. The firm not too long ago raised the worth of Prime for the primary time since 2018, citing wage hikes for employees and rising prices of transportation. The firm additionally hiked costs for sellers by 5 p.c.
The firm has additionally been coping with a wave of organizing at its warehouses across the nation, regardless of vital investments in anti-union consultants. Notably, Amazon CEO Andy Jassy mentioned one of many firm’s priorities can be rising “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 about for July, although it didn’t present a precise date.