While rival brick-and-mortar retailers have had to shut stores during government-imposed lockdowns, Amazon hired 175,000 people in recent months and saw demand for its services soar. The company said revenue jumped 40 percent from a year earlier to $88.9 billion (roughly Rs. 6.64 lakh crores).
Amazon had forecast it might lose money in the just-ended second quarter because it expected to spend some $4bn on protective equipment for staff and other expenses related to COVID-19. It did just that - and still earned $5.2bn, double its net income from a year prior.
Amazon congratulated its employees with Jeff Bezos saying "This was another highly unusual quarter, and I couldn't be more proud of and grateful to our employees around the globe".
Amazon's shares have risen by more than 60 percent this year, adding to the wealth of Bezos, its biggest stockholder. The S&P 500 is virtually flat. Meanwhile, merchants paid Amazon more to fulfill and sponsor their products in order to reach the company's loyal customers. Amazon Web Services, the profitable cloud computing division, had revenue of $10.8 billion and wider profit margins. Analysts on average were expecting revenue of $86.34bn, according to IBES data from Refinitiv. It says is grocery business tripled over the period.
"Demand stayed strong with prime members who were shopping more often and with larger baskets", Chief Financial Officer Brian Olsavsky said, referring to customers who pay monthly or annual fees for access to faster shipping and services such as streaming video.
The good news stretched beyond Amazon's biggest market of the U.S. Its worldwide business, which includes Europe, Japan and India and usually loses money, delivered $345 million in profits. The company has beat analyst expectations of $81.53 billion in revenue and $1.46. EPS. He also said that per usual the current quarter would see higher costs as the company gears up for the holiday season, even more pronounced now due to higher-than-usual sales.
Amazon posted $5.2 billion in profits in the second quarter, doubling its bottom line from same quarter a year ago, despite spending $4 billion on COVID-19 initiatives.