27 Apr 2012 —
Amazon Reports Q1 2012 Sales Up 34%; Profits Down 35%
Total Company Financial Results Highlights – Q1
For first quarter ending March 31, 2012, Amazon reported net sales of USD 13.18 billion, up 34% from USD 9.86 billion in this period last year.
- Net income decreased 35% to USD 130 million, compared to USD 201 million for the same period in 2011.
- Operating income was USD 192 million, compared to USD 322 million for the same period in 2011.
- Free cash flow decreased 39% to USD 1.15 billion for the trailing twelve months, compared to USD 1.90 billion for the previous period.
Earnings were negatively impacted by investment in fulfillment, marketing, Amazon Web Services (e.g., launch of AWS Marketplace and Amazon DynamoDB, and lowered prices), and digital media content (e.g., In-App Purchasing service, Amazon Instant Video for PlayStation 3, an updated Kindle app for iPad, and licensing agreements with Discovery Communications and Viacom).
Segment Financial Highlights – Q1
- The North American segment, including Canada and the US, reported sales grew 36% this quarter to USD 7.43 billion. By category, segment sales and growth YoY:
- Media: USD 2.20 billion, 17%
- Electronics and general merchandise: USD 4.77 billion, 44%
- Other: USD 458 million, 66%
- The International segment, including the UK, Germany, Japan, France, China, Italy, and Spain, reported sales rose 31% for the period to USD 5.76 billion. Excluding the unfavorable exchange rates impact, the company reports sales would have risen by 32%. By category, segment sales and growth YoY:
- Media: USD 2.51 billion, 21%
- Electronics and general merchandise: USD 3.20 billion, 40%
- Other: USD 42 million, 24%
- Worldwide Media sales grew 19% to USD 4.71 billion; excluding unfavorable exchange rates, sales grew 19%
- Worldwide Electronics and Other General Merchandise sales grew 43% to USD 7.97 billion; excluding unfavorable exchange rates, sales grew 43%
For Q2 2012, Amazon expects net sales of between USD 11.9 billion and 13.3 billion, or growth between 20% and 34% compared with the same period in 2011. This guidance excludes financial results of the Kiva Systems, Inc. acquisition as final terms are expected to close in Q2 2012.