Amazon maintains focus on value and convenience

International e-commerce company, Amazon, recently announced its financial results for the third quarter of FY2022.

Net sales increased by 15 per cent to $127.1 billion USD, compared with $110.8 billion in third quarter 2021.

North America segment sales increased by 20 per cent to $78.8 billion USD.

International segment sales decreased by five per cent year-on-year (YOY) to $27.7 billion USD, but increased by 12 per cent excluding changes in foreign exchange rates.

Amazon Web Services (AWS) segment sales increased by 27 per cent to $20.5 billion USD.

Amazon’s operating income decreased to $2.5 billion USD in the third quarter, compared with $4.9 billion USD in 2021.

Net income decreased to $2.9 billion USD in the third quarter, compared with $3.2 billion USD in Q3 2021.

Operating cash flow was reported at $39.7 billion USD, a 27 per cent decrease compared to $54.7 billion USD the year prior.

Free cash flow decreased to an outflow of $19.7 billion USD, compared to $2.6 billion YOY.

Amazon CEO, Andy Jassy, said despite Amazon’s negative financial results, customers appreciate its continued focus on value and convenience.

“We’re also encouraged by the steady progress we’re making on lowering costs in our stores fulfilment network, and have a set of initiatives that we’re methodically working through that we believe will yield a stronger cost structure for the business moving forward,” he said.

“There is obviously a lot happening in the macroeconomic environment, and we’ll balance our investments to be more streamlined without compromising our key long-term, strategic bets.

“What won’t change is our maniacal focus on the customer experience, and we feel confident that we’re ready to deliver a great experience for customers this holiday shopping season.”

In other news, US retail giant, Walmart, has released its Q3 FY2022 earnings which show growth across the board.

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