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The net sales of the e-commerce giant Amazon are expected to be between $112.0 billion and $117.0 billion, or to grow between 3 per cent and 8 per cent in the first quarter (Q1) of fiscal 2022 compared with the first quarter of fiscal 2021. This guidance anticipates an unfavourable impact of approximately 150 basis points from foreign exchange rates.
In the first quarter of 2022, operating income is expected to be between $3.0 billion and $6.0 billion, compared with $8.9 billion in the first quarter of 2021. This guidance includes approximately $1.0 billion lower depreciation expense due to increases in the estimated useful lives of our servers and networking equipment beginning on January 1, 2022, Amazon said in a press release.
Amazon Style, Amazon’s first-ever physical store for apparel, will open in 2022 at The Americana at Brand, a top shopping destination in greater Los Angeles. Amazon Style is built around personalisation and innovation. It uses machine learning algorithms to produce tailored recommendations in real time as customers shop, making it easier than ever to discover new looks. At Amazon Style, customers will be able to have items sent to a fitting room with the tap of a button in the Amazon app and continue shopping from their fitting room without having to leave.
The net sales of the e-commerce giant Amazon are expected to be between $112.0 billion and $117.0 billion, or to grow between 3 per cent and 8 per cent in the first quarter (Q1) of fiscal 2022 compared with the first quarter of fiscal 2021. This guidance anticipates an unfavourable impact of approximately 150 basis points from foreign exchange rates.
In 2021, net sales increased 22 per cent to $469.8 billion, compared with $386.1 billion in 2020. Excluding the $3.8 billion favorable impact from year-over-year changes in foreign exchange rates throughout the year, net sales increased 21 per cent compared with 2020. Operating income increased to $24.9 billion, compared with operating income of $22.9 billion in 2020. Net income increased $33.4 billion, or $64.81 per diluted share, compared with net income of $21.3 billion, or $41.83 per diluted share, in 2020.
“A big thank you to employees across Amazon who overcame another quarter of COVID-related challenges and delivered for customers this holiday season. Given the extraordinary growth we saw in 2020 when customers predominantly stayed home, and the fact that we’ve continued to grow on top of that in 2021, our retail teammates have effectively operated in peak mode for almost two years. It’s been a tremendous effort, and I’m appreciative and proud of how hard our teams have worked to serve customers,” said Andy Jassy, Amazon CEO. “As expected over the holidays, we saw higher costs driven by labour supply shortages and inflationary pressures, and these issues persisted into the first quarter due to Omicron. Despite these short-term challenges, we continue to feel optimistic and excited about the business as we emerge from the pandemic.”
Fibre2Fashion News Desk (RR)
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