Amazon Accelerates Sales Growth In Q2

Amazon continued touting its expansion of Prime and one-day delivery as it posted second quarter sales up 20%.

For the three months ended June 30, net income was $2.63 billion, or $5.22 per diluted share, versus $2.53 billion, or $5.07 per diluted share in the year-earlier period. Although profits gained, Amazon earnings per diluted share fell short of a MarketBeat analyst consensus estimate of $5.29.

Net sales were $63.4 billion with product sales of $35.86 billion and service sales of $27.55 billion. In the quarter a year prior, net sales were $52.89 billion with product sales of $31.86 billion and service sales of $21.02 billion. Operating income was $3.08 billion versus $2.98 billion in the year-previous period.

In announcing the financial results, and although it fell outside the second quarter, Amazon emphasized that Prime Day was again the largest shopping event in Amazon history with more than one million deals exclusively for Prime members. Over the two days that constituted the event this year, held on July 15 and 16, sales surpassed the previous Black Friday and Cyber Monday combined, the company asserted. Amazon welcomed more new Prime members on July 15 than on any previous day, and almost as many on July 16, making those the two biggest days ever for signups to its membership program, the company added.

“Customers are responding to Prime’s move to one-day delivery,” said Jeff Bezos, Amazon founder and CEO. “We’ve received a lot of positive feedback and seen accelerating sales growth. Free one-day delivery is now available to Prime members on more than 10 million items, and we’re just getting started.”