Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Thu Apr 27 2017 16:30:43

Amazon Grows Net Sales 23 Percent in First Quarter 2017

By: Ina Steiner

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Amazon's conference call with analysts is at 5:30 pm EST today, here is the company's press release announcing first quarter 2017 earnings, you can view the full release with tables on Amazon's investor relations website.

Amazon.com Announces First Quarter Sales up 23% to $35.7 Billion
Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its first quarter ended March 31, 2017.

Operating cash flow increased 53% to $17.6 billion for the trailing twelve months, compared with $11.6 billion for the trailing twelve months ended March 31, 2016. Free cash flow increased to $10.2 billion for the trailing twelve months, compared with $6.7 billion for the trailing twelve months ended March 31, 2016. Free cash flow less lease principal repayments increased to $6.2 billion for the trailing twelve months, compared with $3.8 billion for the trailing twelve months ended March 31, 2016. Free cash flow less finance lease principal repayments and assets acquired under capital leases increased to $3.3 billion for the trailing twelve months, compared with $1.9 billion for the trailing twelve months ended March 31, 2016.

Common shares outstanding plus shares underlying stock-based awards totaled 497 million on March 31, 2017, compared with 490 million one year ago.

Net sales increased 23% to $35.7 billion in the first quarter, compared with $29.1 billion in first quarter 2016. Excluding the $492 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 24% compared with first quarter 2016.

Operating income decreased 6% to $1.0 billion in the first quarter, compared with operating income of $1.1 billion in first quarter 2016.

Net income was $724 million in the first quarter, or $1.48 per diluted share, compared with net income of $513 million, or $1.07 per diluted share, in first quarter 2016.

"Our India team is moving fast and delivering for customers and sellers. The team has increased Prime selection by 75% since launching the program nine months ago, increased fulfillment capacity for sellers by 26% already this year, announced 18 Indian Original TV series, and just last week introduced a Fire TV Stick optimized for Indian customers with integrated voice search in English and Hindi," said Jeff Bezos, Amazon founder and CEO. "We're grateful that customers are responding - Amazon.in is the most visited and the fastest growing marketplace in India. It's still Day 1 for e-commerce in India, and I assure you that we'll keep investing in technology and infrastructure while working hard to invent on behalf of our customers and small and medium businesses in India."

Financial Guidance

The following forward-looking statements reflect Amazon.com's expectations as of April 27, 2017, and are subject to substantial uncertainty. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates, changes in global economic conditions and customer spending, world events, the rate of growth of the Internet, online commerce, and cloud services, and the various factors detailed below.

Second Quarter 2017 Guidance

- Net sales are expected to be between $35.25 billion and $37.75 billion, or to grow between 16% and 24% compared with second quarter 2016. This guidance anticipates an unfavorable impact of approximately $720 million or 240 basis points from foreign exchange rates.

- Operating income is expected to be between $425 million and $1.075 billion, compared with $1.3 billion in second quarter 2016.

- This guidance assumes, among other things, that no additional business acquisitions, investments, restructurings, or legal settlements are concluded.

A conference call will be webcast live today at 2:30 p.m. PT/5:30 p.m. ET, and will be available for at least three months at www.amazon.com/ir. This call will contain forward-looking statements and other material information regarding the Company's financial and operating results.

See the full press release on the Amazon Investor Relations website, including highlights and disclaimers.




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Perminate Link for Amazon Grows Net Sales 23 Percent in First Quarter 2017   Amazon Grows Net Sales 23 Percent in First Quarter 2017

by: Frank Abagnale This user has validated their user name.

Thu Apr 27 16:55:15 2017

Wow, I guess Amazon must have raised their selling fees 23% and also lowered any discounts to its 3rd party sellers.

Perminate Link for Amazon Grows Net Sales 23 Percent in First Quarter 2017   Amazon Grows Net Sales 23 Percent in First Quarter 2017

by: FeelingFroggy This user has validated their user name.

Thu Apr 27 17:40:11 2017

Amazon is the only place our family shops. Ebay is just to convoluted to even try finding anything except chinese junk.

Perminate Link for Amazon Grows Net Sales 23 Percent in First Quarter 2017   Amazon Grows Net Sales 23 Percent in First Quarter 2017

by: pace306 This user has validated their user name.

Thu Apr 27 17:47:26 2017

If I was Devin Wenig .... Id start asking how early an eBay exec is eligible for the Golden Parachute ... he's gonna need it!

Perminate Link for Amazon Grows Net Sales 23 Percent in First Quarter 2017   Amazon Grows Net Sales 23 Percent in First Quarter 2017

This user has validated their user name. by: iheartjacksparrow

Thu Apr 27 17:52:45 2017

Just wait until Toolguy posts that all of eBay's numbers are better than Amazon's.

Perminate Link for Amazon Grows Net Sales 23 Percent in First Quarter 2017   Amazon Grows Net Sales 23 Percent in First Quarter 2017

This user has validated their user name. by: Groucho

Thu Apr 27 22:31:25 2017

The usual question at this point would usually be "What does Amazon have that eBay does not?". That is the wrong question! The proper question is "what does eBay have that Amazon does not" Answer - a VERO department. Jeff Bezos wins again!

Perminate Link for Amazon Grows Net Sales 23 Percent in First Quarter 2017   Amazon Grows Net Sales 23 Percent in First Quarter 2017

by: Volvo351 This user has validated their user name.

Fri Apr 28 01:14:07 2017

Lemmie get this straight: The River grows NET REVENUE by a Yuuuge! margin, while feeBay grows something worthless they call 'Gross Merchandise Value' by a meaningless, meager percentage? Is that right?

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This user has validated their user name. by: Rexford

Fri Apr 28 07:50:52 2017

eBay can't sell what can't be seen. Blame their multiple reinventions of search.

Imagine walking into a grocery market or department store and being steered to an aisle that features only select brand items by favored vendors while all other items are locked in the store room out of view.

Perminate Link for Amazon Grows Net Sales 23 Percent in First Quarter 2017   Amazon Grows Net Sales 23 Percent in First Quarter 2017

This user has validated their user name. by: toolguy

Fri Apr 28 10:53:23 2017

My eBay sales grew 23% this week.

It's been the best April ever!

Still have a few days left to fatten the bank account and pay the bills.

Perminate Link for Amazon Grows Net Sales 23 Percent in First Quarter 2017   Amazon Grows Net Sales 23 Percent in First Quarter 2017

by: RL15 This user has validated their user name.

Fri Apr 28 11:19:31 2017


ha ha ha. die fleecebay die.

Perminate Link for Amazon Grows Net Sales 23 Percent in First Quarter 2017   Amazon Grows Net Sales 23 Percent in First Quarter 2017

This user has validated their user name. by: RKTOYS

Fri Apr 28 13:20:37 2017

It won't make me popular here but I've had a decent 60 days on eBay too.  I mean, I'll take 10/$600 there over 3/-$40 on Amazon over the same period any time.  It's just that $300/month used to be my baseline.

I still say people aren't spending, period.  On collecting forums, so many are saying they'll wait for a half off sale on everything.  Sure, those people have always been there, but it's an epidemic now.  At this point, I honestly think that even if eBay lowered their take to 0%, it wouldn't make a difference.

Perminate Link for Amazon Grows Net Sales 23 Percent in First Quarter 2017   Amazon Grows Net Sales 23 Percent in First Quarter 2017

by: Jester This user has validated their user name.

Mon May 1 01:04:37 2017

Watch the next 2 quarters they will be bad. Many Amazon sellers were slashing prices to clear out old inventory before the new horrendous long term storage fees kicked in and increase of about 300%. Many sellers had much inventory sent back to them and deleted also. Next 2 quarters are for the slowest months of the year and much depleted 3rd party seller inventory.

Perminate Link for Amazon Grows Net Sales 23 Percent in First Quarter 2017   Amazon Grows Net Sales 23 Percent in First Quarter 2017

by: Moonwishes This user has validated their user name.
Web Site

Mon May 1 01:28:20 2017

I don't know how many Amazon sellers that I saw on the Amazon seller talking about leaving A to go to ebay in the past few weeks! Me thinks some folks are wearing rosy tinted glasses. amazon has a lot of significant changes going on recently as does apparently ebay and etsy. Time to look for a place to sell that doesn't change fees and searches at the drop of a hat. I suggest eCRATER, where the more good sellers with good inventory, the more eyeballs and buyers we would get.

Perminate Link for Amazon Grows Net Sales 23 Percent in First Quarter 2017   Amazon Grows Net Sales 23 Percent in First Quarter 2017

by: Chicago48 This user has validated their user name.

Mon May 1 05:53:27 2017

I still say people aren't spending, period.  On collecting forums, so many are saying they'll wait for a half off sale on everything.
^^
This is happening.  Also the consumer is trained to wait for sales and clearances.  The retailers have been running discount sales for the past year, so why not wait and buy at half price?
As for Ecrater -- good luck with that.  It's worse than Ebay IMO for sales.



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