Amazon Stumbles On Slower Sales Growth, Higher Labor Costs

11 months ago 108

By Associated Press
October 29, 2021

The retail elephantine reported it came up abbreviated connected gross projections past 4th due to the fact that of proviso concatenation problems and labour shortages.

Amazon isn't conscionable grappling with the easing of pandemic-induced buying splurges. The online retail behemoth is besides contending with surging costs arsenic it navigates a snarled proviso concatenation and labour shortages.

Those challenges resulted successful Amazon reporting a shortfall Thursday successful third-quarter profits and sales. It besides led the Seattle-based institution to present a vacation income forecast that was beneath Wall Street expectations.

The issues are the latest twist that Amazon has had to face since the opening of the pandemic successful the outpouring of 2020. Amazon was 1 of the fewer retailers that has prospered during the COVID-19 outbreak: As carnal stores selling non-essential goods temporarily oregon permanently closed, homebound radical turned to Amazon for everything from groceries to cleaning supplies.

The institution reported a nett of $6.2 billion, oregon $6.12 per share, for the three-month play that ended Sept. 30. That compared with a nett of $6.3 billion, oregon $12.37 per share, a share, during the year-ago period. Revenue roseate 15% to $110.8 billion, the company's 4th consecutive 4th of gross topping $100 billion.

During the 3rd quarter, Amazon incurred astir $1 cardinal of other costs tied to wage summation and incentives. It said its mean starting wage is present much than $18 with an further $3 per hr depending connected shifts successful antithetic locations and signing bonuses that tin beryllium up to $3,000.

In addition, it saw inflationary pressures successful earthy materials and services specified arsenic alloy and third-party trucking. Amazon ran into different $1 cardinal of costs tied to mislaid productivity and disruption successful its operations.

Additional reporting by The Associated Press.