Amazon's Q3 net sales jump 34 percent

Amazon's Q3 net sales jump 34 percent

Amazon's Q3 net sales jump 34 percent

Overall for the three-month period ending September 30, profits totaled $256 million, or 52 per share, up slightly from $252 million, or 52 per share, a year earlier.

Amazon's early Whole Foods initiatives included price reductions, selling whole Foods products on Amazon.com and installing Amazon Lockers at Whole Foods locations to drive foot traffic.

Amazon acquired grocery store chain Whole Foods in August for just over $13.7 billion to help in delivering groceries to the doorstep of shoppers.

Analysts polled in advance of the earnings report expected Amazon to post $42.14 billion in revenue for the quarter, with earnings of $0.03 per share - both of which Amazon exceeded.

Amazon's third annual Prime Day shopping bonanza occurred in July, with sales growing 60 percent from a year ago.

Amazon's total sales were $43.7 billion, up 34% from the third quarter of previous year, when the company sold $32.7 billion worth of everything from toilet paper to streaming movies. Last year, Amazon began a start-up accelerator program around Alexa, this summer the company created an Alexa-centered developer learning series, and the e-commerce giant has made other moves as well, like releasing core technology to developers.

"I think over time, you'll see more cooperation and working together between AmazonFresh, Prime Now, and Whole Foods as we can explore different ways to serve the customer", Olsavsky said during an earnings call.


Key to success at Amazon has bene signing up more customers for its club Amazon Prime, which is its video streaming and fast shipping segment, whose members usually buy more from the online giant. Revenue from subscription fees such as Prime grew 59 per cent to $2.4 billion. The company reported net income of $256 million on $43.7 billion in sales.

Unlike peers, Amazon runs on razor-thin profit margins because it sinks most of its profit back into its business.

Amazon's stock immediately jumped, hitting an after-hours high of $1,054.99 a share.

Net sales for the fourth quarter, the company said, are expected to be between 56 billion and 60.5 billion dollars or to grow between 28 percent and 38 percent compared with fourth quarter 2016. Analysts on average were expecting $1.5 billion, according to data and analytics firm FactSet.

Short believes that Whole Foods' food innovation cycle is likely to slow as the two companies further integrate, and that if Whole Foods becomes more like conventional food stores, may even come to a halt, while competitors - most notably Trader Joe's - continue to become more innovative.

Amazon also kicked off its National Football League live streaming deal and suspended the head of its studio division, Roy Price, after sexual harassment claims made against him.

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