Amazon’s profits plunged to $3.2 billion in the third quarter, dropping by nearly half year-over-year, and CEO Andy Jassy told shareholders to brace for more of the same in the critical holiday season.
“In the fourth quarter, we expect to incur several billion dollars of additional costs in our Consumer business as we manage through labor supply shortages, increased wage costs, global supply chain issues, and increased freight and shipping costs—all while doing whatever it takes to minimize the impact on customers and selling partners this holiday season,” Jassy said in Amazon’s earnings release.
He added, “It’ll be expensive for us in the short term, but it’s the right prioritization for our customers and partners.”
For the third quarter, Amazon posted earnings of $6.12 per share, well below Wall Street’s expectations of $8.92 per share, and down from $12.37 per share a year ago. Net sales rose 15% to $110.8 billion, toward the high end of the company’s prior guidance, missing analyst expectations of $111.6 billion.
Developing story, more to come.
from GeekWire https://www.geekwire.com/2021/amazon-delivers-big-earnings-miss-jassy-warns-q4-will-bring-several-billion-dollars-additional-costs/