THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Amazon reports loss in third quarter

Amazon made a loss in its third quarter as the company invested heavily in new technology and its distribution centres and was dragged down by an impairment charge on its stake in daily deals site LivingSocial.com.

GENERAL MERCHANDISE

Amazon reports loss in third quarter

Amazon made a loss in its third quarter as the company invested heavily in new technology and its distribution centres and was dragged down by an impairment charge on its stake in daily deals site LivingSocial.com.

The online retail giant reported a loss of $274 million for the period July to September compared to net income of $63 million in the same three months in 2011. The results included a loss of 37 cents per share related to Amazon's minority stake in LivingSocial.

Although net sales increased by 27% to $13.81 billion compared with $10.88 billion in the third quarter 2011, the figure fell short of analysts’ expectations. 

Chief financial officer Tom Szkutak also attributed the loss to increased investment in overseas expansion and the development of the company's Kindle e-readers and tablets. In addition, Amazon is opening 19 distribution centres across the US in the run-up to Christmas and is hiring 50,000 temporary workers.

Amazon.com said its Kindle Fire HD tablet was its best-selling product worldwide. The company is due to launch a larger version of the tablet next month.

"Our approach is to work hard to charge less," said Jeff Bezos, founder and CEO of Amazon.com. "Sell devices near breakeven and you can pack a lot of sophisticated hardware into a very low price point."

For the current quarter, Amazon has predicted that its operating income will range from a profit of $310 million and a loss of $490 million with revenue expected to be between $20.25 billion and $22.75 billion.

 

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Digitally native competitors and demanding customers are forcing a new perspective in retail. AI and machine learning can help you step up to the challenges; and some ‘small and beautiful’ solutions can increase your conversion rates within just a few weeks.
Payment Roundtable 2019
Payment Roundtable 2019
6 February 2019
The Cavendish Conference Centre, 22 Duchess Mews, London W1G 9DT
The Retail Bulletin Payment Roundtable will raise debate and discussion centred on but not exclusive to improving the in-store payment process