According to the company's earnings released Thursday, Amazon's sales grew in the third quarter for the first time in three quarters. The company's stock fell more than 4% in after-hours trading after it was announced that it was expecting a tighter holiday season.
Last quarter's sales were up 15 percent over the previous year. Amazon called its Prime Day event the biggest Prime Day event in history. The company is expecting a slower holiday season. Amazon said it expects net sales to grow between 2 and 8 percent next quarter, which is in line with last year. The company doesn't know if operating income will land between $0 and $4.0 billion, compared with $3.5 billion in the same quarter a year ago.
According to Andy Jassy, the CEO of Amazon, the company is trying to keep costs down. The company is seeing steady progress in lowering costs in its fulfillment network and has a set of initiatives that we believe will yield a stronger cost structure for the business moving forward. He promises that the company will not compromise on its long-term bets.
The holiday quarter may be affected by Amazon having a big October. The Prime Early Access Sale may not have given Amazon as much of a boost as it would have liked. The company gave up on the Glow video calling device and the online fabric store. According to reports, Amazon has stopped corporate retail hiring.
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