Amazon expects third-quarter revenue to jump

(Reuters) – Amazon said on Thursday it expects third-quarter revenue to jump as it expects the price of its Prime subscription to rise as a fuel surcharge for merchants on its platform has allowed to offset the increase in delivery costs.

The e-commerce giant’s stock rose 7% in post-close trading on Wall Street.

Like most retailers, Amazon is facing headwinds amid soaring inflation and declining consumer confidence. Its arch-rival Walmart lowered its quarterly and annual profit forecasts this week.

Despite this, Amazon said it expects July-September net sales of between $125 billion and $130 billion, while analysts expected an average of $126.42 billion, according to IBES data from Refinitiv. .

The “Prime Days” organized in July in North America are expected to boost third quarter sales, while the group indicated that a record had been set in terms of the number of products sold.

However, the situation is far from idyllic for Amazon, which posted its first loss in seven years in the first quarter after a series of record profits.

In the second quarter, the e-commerce giant posted a loss of $2 billion. But its operating profit beat Wall Street expectations, coming in at $3.3 billion versus a consensus of $1.8 billion, according to FactSet.

Net sales came in at $121.23 billion in the April-June period, while analysts had expected an average of $119.09 billion according to IBES data from Refinitiv.

(Report Tiyashi Datta in Bangalore; French version Jean Terzian)

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