US e-commerce giant Amazon has reported a 10% surge in net sales in the first quarter (Q1) of fiscal 2025 (FY25), adjusted for a $1.4bn negative impact due to fluctuations in foreign exchange rates.
Sales within the North America segment experienced 8% year-on-year growth, reaching $92.89bn. International segment sales climbed to 5% to $33.51bn.
The company's operating income experienced an upswing, reaching $18.41bn in the first quarter - an improvement from $15.31bn during the same period of FY24.
The North America segment's operating income rose to $5.84bn from $4.98bn in Q1 FY24, while the international segment's operating income grew to $1.01bn from $0.9bn.
Amazon saw its net income escalate to $17.1bn in Q1, or $1.59 per diluted share, compared with a net income of $10.43bn, or $0.98 per diluted share, in Q1 FY24.
Trailing 12-month operating cash flow increased by 15%, totalling $113.9bn - a step up from the $99.15bn recorded for the trailing 12 months ending 31 March 2024.
Commenting during an earnings call on the potential implications of increased tariffs on the company's retail operations, Amazon CEO Andy Jassy stated that while the future landscape of tariffs remains uncertain in terms of final rates and timing, there has been no observed decrease in consumer demand to date.
Jassy mentioned that the surge in purchases within certain product categories could suggest that consumers are accumulating goods in anticipation of the possible effects of tariffs.
He pointed out that there has not been a significant rise in the average selling price of retail products thus far.
He said: “Amazon is not uniquely susceptible to tariffs. As it relates to China, retailers who aren’t buying directly from China are typically buying from companies who themselves are buying from China, marking these items up, rebranding and selling to US consumers. These retailers are buying the product at a higher price than Chinese sellers selling directly to US consumers in our marketplace, so the total tariff will be higher for these retailers than for China direct sellers.”
Looking ahead to the second quarter of 2025, Amazon anticipates net sales to fall between $159.0bn and $164.0bn, indicating potential growth between 7% and 11% compared with the second quarter of 2024.
This forecast accounts for an approximate ten basis point impact due to unfavourable foreign exchange rates.
Projected operating income for the upcoming quarter is estimated to range between $13.0bn and $17.5bn - a shift from the $14.7bn reported in Q2 FY24.
Amazon recently announced plans to invest more than $4bn in expanding its rural delivery network, focusing on small towns across the US.
