Amazon had signaled that slower sales growth - and high spending in areas such as wages and new warehouses - would persist through the end of the year.
Amazon shares have gained 5.8 per cent this year, underperforming the broader market, as consumers who turned to online ordering in record numbers during the pandemic began to resume in-person shopping, eating out and traveling. The results reflected the first period under new Chief Executive Officer Andy Jassy, who took the helm of the world’s largest online retailer from Jeff Bezos in July. Operating income could be as low as zero, Amazon said, a step back for the company after reaping billions of dollars in profit each quarter going back to early 2018. Analysts, on average, estimated US$141.6 billion, according to data compiled by Bloomberg.
Revenue will be US$130 billion to US$140 billion in the period ending in December, the Seattle company said Thursday in a statement.
The shares declined about 4 per cent in extended trading. The company also reported third-quarter revenue and earnings that fell short of projections. The massive outlays could wipe out Amazon’s profit during the last three months of the year, executives said. warned Wall Street that it will have to spend billions of dollars hiring workers, paying them more and even speeding partly empty trucks to their destinations to ensure that supply-chain snarls don’t derail the holiday shopping season.
