In terms of geographic segments, North America led the way with an 11 per cent sales increase to $87.9 billion. The international segment followed closely with a 16 per cent increase in sales, amounting to $32.1 billion. Without the effect of foreign exchange rate changes, international sales growth was 11 per cent, Amazon said in its Q3 FY23 results.

On the operational side, Amazon reported an increase in operating income in Q3 FY23, which soared to $11.2 billion, up from just $2.5 billion in Q3 FY22. The North America segment turned around its performance, posting an operating income of $4.3 billion, in contrast to an operating loss of $0.4 billion in the same quarter last year. The international segment managed to reduce its operating loss to a mere $0.1 billion, compared to a much higher loss of $2.5 billion in Q3 FY22.

Net income for the quarter was $9.9 billion, or $0.94 per diluted share. This marks a substantial increase from the $2.9 billion, or $0.28 per diluted share, reported in the same quarter last year.

Looking ahead to the fourth quarter of fiscal 2023, Amazon expects net sales to be between $160 billion and $167 billion, representing a growth of 7 to 12 per cent compared to the fourth quarter of 2022. Operating income for Q4 is expected to range between $7 billion and $11 billion, compared to $2.7 billion in the fourth quarter of FY22.

“We had a strong third quarter as our cost to serve and speed of delivery in our stores business took another step forward and overall operating income and free cash flow rose significantly,” said Andy Jassy, Amazon CEO. “The benefits of moving from a single national fulfilment network in the US to eight distinct regions are exceeding our optimistic expectations, and perhaps most importantly, putting us on pace to deliver the fastest delivery speeds for Prime customers in our 29-year history.”

Fibre2Fashion News Desk (DP)