Amazon earnings triple in third quarter

Amazon has seen its net sales soar by 37% to $96.1bn (£74bn) in the third quarter of trading, up from the $70bn (£54bn) earnings reported in the third quarter of 2019.  

In the same period, net income also tripled to $6.3bn (£4.9bn) in the third quarter, compared with net income of $2.1bn (£1.6bn) reported last year.  

In addition, operating cash flow rocketed 56% to $55.3bn (£43bn) for the trailing twelve months, compared with $35.3bn (£27bn) for the trailing twelve months ended September 30, 2019.  

Its latest results come despite the company spending $4bn (£3bn) on coronavirus-related measures, including money spent on PPE, enhanced cleaning of its facilities and increasing its staff wages. 

In addition, the retail giant announced that it is creating “hundreds of thousands” of new jobs, including 100,000 new seasonal jobs across Amazon Air, logistics, fulfillment centers and sortation centers.

It is also creating 10,000 new permanent jobs in the UK, bringing the total Amazon jobs in the country to 40,000.

Looking ahead, net sales are expected to be between $112bn (£87bn) and $121bn (£94bn) in the fourth quarter, marking an increase of 28% and 38% against the year prior, respectively. 

CEO Jeff Bezos said: “Two years ago, we increased Amazon’s minimum wage to $15 for all full-time, part-time, temporary, and seasonal employees across the U.S. and challenged other large employers to do the same. 

“Best Buy and Target have stepped up, and we hope other large employers will also make the jump to $15. Now would be a great time.”

He added: “Offering jobs with industry-leading pay and great healthcare, including to entry-level and front-line employees, is even more meaningful in a time like this, and we’re proud to have created over 400,000 jobs this year alone. 

“We’re seeing more customers than ever shopping early for their holiday gifts, which is just one of the signs that this is going to be an unprecedented holiday season. Big thank you to our employees and selling partners around the world who’ve been busy getting ready to deliver for customers this holiday.”