Third quarter sales at Amazon surpassed $50 billion and profits increased tenfold even as the company rolled out new retail concepts.
Net income for the quarter ended September 30 increased to $2.88 billion, or $5.75 per diluted share, versus net income of $256 million, or 52 cents per diluted share, in the year-previous period. Amazon beat a Zacks Investment Research analyst consensus estimate of $3.29 per diluted share.
Net sales increased 29% to $56.58 billion in the third quarter year over year. Net product sales were $33.75 billion and service sales were $22.83 billion versus $28.77 billion and $14.98 billion, respectively, in the year-before quarter. Operating income increased to $3.72 billion from $347 million in the 2017 third quarter.
Retail oriented highlights among the quarter’s developments, the company pointed out, include:
- Amazon 4-star launched in New York City as a physical store concept that offers a curated selection of four-star rated products from the categories across Amazon.com including kitchen and home goods, devices, consumer electronics, toys, games, and books.
- Amazon Go, the company’s no checkout required store concept, continued expansion with five new stores opened in Seattle, Chicago and San Francisco.
- Amazon expanded grocery delivery from Whole Foods Market through Prime Now. The service is currently available in more than 60 U.S. cities, offering customers delivery in as fast as an hour.
- Amazon launched grocery pickup from Whole Foods Market through Prime Now in 10 cities with more to follow. The service allows customers to place their order via the Prime Now app and pick up their groceries in as little as 30 minutes, the company said.
- Amazon Storefronts debuted in the U.S., Germany and the United Kingdom, operations that enable customers to shop online for over one million products exclusively from small and medium-sized businesses selling on Amazon.
Looking ahead to the fourth quarter, Amazon said it expects net sales to be between $66.5 billion and $72.5 billion, or to grow between 10% and 20% compared with fourth quarter 2017.