Amazon posts first loss since 2015 amid rising costs
Amazon has posted its first loss since 2015 amid rising costs and loss on its investment in electric vehicle company Rivian.
For the first quarter ending 31 March 2022, Amazon reported net sales increased 7% to $116.4 billion in the first quarter, compared to a 44% increase in the same period last year.
In the same period, the tech giant reported net loss of $3.8 billion, or $7.56 per diluted share, citing a pre-tax valuation loss of $7.6 billion from its investment in Rivian Automotive, Inc.
Operating income decreased to $3.7 billion in the first quarter, compared with $8.9 billion in first quarter 2021.
This week, Amazon announced the implementation of a 4.3% fuel and inflation surcharge beginning 28 April, highlighting the pressures on operations from rising inflation.
Andy Jassy, CEO of Amazon said: "The pandemic and subsequent war in Ukraine have brought unusual growth and challenges ... Today, as we’re no longer chasing physical or staffing capacity, our teams are squarely focused on improving productivity and cost efficiencies throughout our fulfillment network.
"We know how to do this and have done it before. This may take some time, particularly as we work through ongoing inflationary and supply chain pressures, but we see encouraging progress on a number of customer experience dimensions, including delivery speed performance as we’re now approaching levels not seen since the months immediately preceding the pandemic in early 2020.”