Amazon Delivers Impressive Q2 Results

It was a strong second quarter for Amazon, which saw financial gains nearly across the board. For the quarter ended June 30, the company posted a net sales increase of 11% to $134.4 billion, along with a similar segment sales increase in North America of 11% year-over-year to $82.5 billion.

Amazon’s operating income increased exponentially to $7.7 billion during Q2, compared with $3.3 billion in Q2 of 2022. North America segment operating income was $3.2 billion, compared with an operating loss of $0.6 billion in Q2 of 2022. Moreover, net income was $6.7 billion, or $0.65 per diluted share, compared with a net loss of $2.0 billion, or $0.20 per diluted share, year over year.

[Read more: "Amazon Fresh Launches Delivery, Pickup for Non-Prime Members"]

“It was another strong quarter of progress for Amazon,” said Andy Jassy, Amazon CEO. “We continued lowering our cost to serve in our fulfillment network, while also providing Prime customers with the fastest delivery speeds we’ve ever recorded. We remain excited about what lies ahead for customers and the company.”

As for speed in Q2, Amazon reports that it delivered its largest selection of products to Prime members in the United States at the fastest speeds ever. Across the top 60 largest U.S. metro areas, more than half of Prime member orders arrived the same or next day. 

The retailer also increased selection in the U.S. Amazon store, adding new beauty and fashion brands, as well as an expanded selection of grocery items from brands including General Mills and Coca-Cola.

For the third quarter, Amazon expects net sales to be between $138 billion and $143 billion, or to grow between 9% and 13% compared with Q3 of 2022. Operating income is expected to be between $5.5 billion and $8.5 billion, assuming that no additional business acquisitions, restructurings or legal settlements are concluded.

Despite several missteps in the grocery space, Amazon remains committed to growing its presence within the industry. After only a few years in operation, Amazon Fresh has redesigned its stores in Schaumburg and Oak Lawn, Ill., in its quest to build a best-in-class grocery shopping experience.

Acknowledging that his company’s foray into food retailing has been slowed by a series of external circumstances (citing lack of normalcy in the business environment), Jassy mentioned back in April that his retail teams were working to enhance the Amazon Fresh operation. “We’re experimenting with selection, checkout formats, assortment, price points,” he said. “I’m encouraged we have several that I think are promising.”

Seattle-based Amazon is No. 2 on The PG 100, Progressive Grocer’s 2023 list of the top food and consumables retailers in North America. PG also named the company one of its Retailers of the Century.