1. News
April 29, 2022

Amazon reports 7% net sales increase to $116.4bn in Q1 2022

The retailer expects its net sales to grow by between 3% and 7% in the second quarter of the year.

E-commerce giant Amazon has reported its net sales for the first quarter (Q1) of the fiscal year 2022 (FY22) amounted to $116.4bn, up by 7% year-on-year.

The retailer’s net sales, excluding the impacts of year-over-year changes in foreign exchange rates, rose by 9% during the quarter.

The company’s largest market, North America, reported an 8% growth in net sales during the quarter, which ended on 31 March.

Amazon saw its sales in international markets drop by 6%, having temporarily suspended retail product shipments and its video streaming service in Russia last month.

The company’s operating income fell to $3.7bn from $8.9bn in Q1 2021, while it registered a net loss of $3.8bn, or $7.56 to a share, compared with $8.1bn in the corresponding period of the prior year.

Amazon CEO Andy Jassy said: “The pandemic and subsequent war in Ukraine have brought unusual growth and challenges.

“Our Consumer business has grown 23% annually over the past two years, with extraordinary growth in 2020 of 39% year-over-year that necessitated doubling the size of our fulfilment network that we’d built over Amazon’s first 25 years—and doing so in just 24 months.

“Today, as we’re no longer chasing physical or staffing capacity, our teams are squarely focused on improving productivity and cost efficiencies throughout our fulfilment network. We know how to do this and have done it before.

“This may take some time, particularly as we work through ongoing inflationary and supply chain pressures, but we see encouraging progress on a number of customer experience dimensions, including delivery speed performance as we’re now approaching levels not seen since the months immediately preceding the pandemic in early 2020.”

For the second quarter (Q2) of FY22, Amazon estimates its net sales to increase to between $116.0bn and $121.0bn.

The retailer recently expanded shopping benefits for its Prime members beyond Amazon.com by launching Buy with Prime.