Amazon has announced a net sales increase of 15 percent to $127.1 billion in the third quarter ended Sept. 30. Excluding the $5.0 billion unfavorable impact from year-over-year changes in foreign exchange rates during the quarter, net sales increased 19 percent versus third quarter 2021. Sales at the Amazon Web Services (AWS) segment increased 27 percent to $20.5 billion or 28 percent, excluding changes in foreign exchange rates. The company’s operating income decreased to $2.5 billion in the third quarter, compared with $4.9 billion in the third quarter of 2021. Net income fell to $2.9 billion, or $0.28 per diluted share, from $3.2 billion, or $0.31 per diluted share, in the third quarter of 2021.
In the past quarter, the e-commerce giant opened a dozen new fulfillment centers globally. New sites were opened in the U.S., Canada, Mexico, Ireland, and Turkey. It also expanded to Belgium with the launch of Amazon.com.be and a Prime program for local customers. As part of the launch, Amazon introduced the “Brands of Belgium” storefront, showcasing products from Belgian entrepreneurs.
For the fourth quarter, Amazon expects net sales to be between $140.0 billion and $148.0 billion, “the slowest holiday-quarter sales growth ever,” stressed a Bloomberg report. This outlook anticipates an unfavorable impact of around 460 basis points from foreign exchange rates. Operating income is forecast to be between $0 and $4.0 billion, compared with $3.5 billion in the fourth quarter of 2021.
