Amazon announces Q1 2019 sales are up 17%

Amazon has released its financial results for Q1 of 2019. Total net sales amounted to $59.7bn, as expected by Amazon, a 17% increase on the same period in 2018. Net product sales grew by 8.5% year-on-year to $34.3bn while net service sales grew by 30% to $25.4bn.

Operating income increased from $1.9bn in Q1 2018 to $4.4bn in Q1 2019. Net income totalled $3.5bn in Q1 2019, an increase of $1.9bn from the same period last year, excluding the $1.1bn unfavourable impact from year-over-year changes in foreign exchange rates throughout the quarter.

Online sales for Q1 2019, grew by 9.5% year-on-year to $29.5bn. The expansion of bricks and mortar has continued to increase sales from physical stores, although only by small 1% for Q1 2019, still totalling $4.3bn.

North America makes up most of the sales for Amazon and performed well in Q1 2019. Net sales increased from $30.7bn in Q1 2018 to $35.8bn in Q1 2019. Operating income increased, totalling $2.3bn in Q1 2019. Internationally net sales increased by 8.9% to $16.2bn. However, operating income still registered as a loss but has improved from Q1 2018, currently standing at -$90m. Amazon Web Services (AWS) saw net sales increase by 41.4% compared to Q1 2018, reaching $7.7bn.

Going forward, Amazon is set to invest a further $800m in Prime. It will invest the money in Q2 2019 to speed up its two-day delivery service to a one-day delivery pledge. In the last year it has been building fulfilment centres and expanding air hubs across the US. According management, the one-day promise will be supported by its own delivery arm as wells as partners like UPS, FedEx and USPS.

Source: Amazon