US retail giant Amazon swung to its second consecutive quarterly loss in the three months to June 30.
The Seattle-based company made a net loss of 2 billion dollars in the quarter compared to a profit of 7.8 billion dollars a year ago. Amazon said its investment in electric vehicle company Rivian had a big impact on its profits.
Despite the loss, Amazon’s revenue was ahead of expectations, increasing 7 percent year-over-year to 121.2 billion dollars.
It expects third-quarter net sales of between between 125 billion dollars and 130 billion dollars, representing growth of between 13 percent and 17 percent compared with the third quarter of 2021.
Shares in the company were up more than 13 percent in extended hours on Thursday following the results.
Amazon CEO Andy Jassy told investors: “Despite continued inflationary pressures in fuel, energy, and transportation costs, we’re making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfillment network.”
The company also continued to expand in the fashion sector during the quarter, opening its first-ever physical store for apparel in Glendale, California; launching a new mobile experience allowing shoppers to virtually try on shoes; and expanding its selection of size-inclusive fashion.