Amazon's Margins Take Another Hit As Sales Growth Slows Down
by Trefis
Quick Take Amazon announces earnings for Q1 2013. Revenue growth slows down to 22% from 34% during the same period last year. Operating margins decline to 1.12% from 1.45% last year. Strong overall growth in electronics and other general merchandise sales while media sales growth slows down internationally. Growth in sales of digital products and Amazon Web Services will drive margin improvement in the future. Amazon (NASDAQ:AMZN) reported its Q1 2013 earnings Thursday, with revenues growing to $16 billion, up 22% year-over-year. The 22% growth was well below the 34% growth during same period last year. Most of its sales growth was driven by the services segment, which grew sales at about 45% to $2.8 billion from $1.9 billion a year ago. Electronics and other general merchandise also reported strong sales which grew at about 28% globally. Amazon’s operating margins as a percent of consolidated sales for the quarter were 1.12%. Net profits declined 37 percent to $81 million for the period. read more »
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