30, a 30 per cent increase from a year earlier. And those ‘out-of-stocks’ are going to be more severe than people expect.”Īmazon employed more than 1.46 million full- and part-time workers as of Sept. “They’re going to have to step up hiring,” Yruma said. “It’ll be expensive for us in the short term, but it’s the right prioritization for our customers and partners.”Įd Yruma, an analyst at KeyBanc Capital Markets, said supply chain and labor pressures may mean Amazon can’t get goods to customers as fast as usual or some hoped-for items may not be available despite the company’s extra spending. “In the fourth quarter, we expect to incur several billion dollars of additional costs in our consumer business as we manage through labor supply shortages, increased wage costs, global supply chain issues, and increased freight and shipping costs,” he said in the statement. While Amazon earlier this week sought to reassure shoppers and shareholders that its investments left it well prepared to weather the global supply chain woes, Jassy said the expansion would come at a cost.
Amazon is increasingly dispatching partly empty trucks, sending products on more circuitous routes and speeding some shipments to make sure that customers get their items within the company’s promised windows. “Consumers have started to return to prepandemic spending patterns,” Chief Financial Officer Brian Olsavsky said. Amazon had signaled that slower sales growth - and high spending in areas such as wages and new warehouses - would persist through the end of the year. Amazon shares have gained 5.8 per cent this year, underperforming the broader market, as consumers who turned to online ordering in record numbers during the pandemic began to resume in-person shopping, eating out and traveling. The results reflected the first period under new Chief Executive Officer Andy Jassy, who took the helm of the world’s largest online retailer from Jeff Bezos in July. Operating income could be as low as zero, Amazon said, a step back for the company after reaping billions of dollars in profit each quarter going back to early 2018. Analysts, on average, estimated US$141.6 billion, according to data compiled by Bloomberg. Revenue will be US$130 billion to US$140 billion in the period ending in December, the Seattle company said Thursday in a statement. The shares declined about 4 per cent in extended trading. The company also reported third-quarter revenue and earnings that fell short of projections. The massive outlays could wipe out Amazon’s profit during the last three months of the year, executives said. warned Wall Street that it will have to spend billions of dollars hiring workers, paying them more and even speeding partly empty trucks to their destinations to ensure that supply-chain snarls don’t derail the holiday shopping season.
0 kommentar(er)
