Amazon reported weaker-than-expected Q3 results and delivered disappointing guidance for the critical holiday period, according to a news release by Amazon on Thursday.
- Amazon is struggling with decelerating sales growth as consumers returns to physical stores, and the company faces supply chain challenges.
- In the third quarter, revenue rose 15%, down from 37% expansion posted in the same period a year ago.
- Sales in online stores rose 3% from a year earlier to reach $49.9 billion as physical store revenues rose 1% to $4.27 billion.
- Revenue from third-party seller services rose 18% to $24.25 billion, a slowdown from 34% growth in the second quarter and 60% in the first quarter.
- For the fourth quarter, Amazon forecast sales between $130 billion and $140 billion, representing growth between 4% and 12%.
Amazon CEO Andy Jassy stated the company expects to take on “several billion dollars” of additional costs in its consumer units in Q4 due to labor shortages and global supply chain constraints. AMZN down -4.83% Pre-market trading