Profits take a hit for the e-commerce giant. The company also says that earnings in the current period will be entirely wiped out by COVID-related expenses.
AMAZON. This file photo taken on November 28, 2019 shows the Amazon logo at one of the company's centers in Bretigny-sur-Orge on November 28, 2019. Photo by Thomas Samson/AFP
Chief executive Jeff Bezos said all profits in the April-June quarter would be erased by expenses linked to the global virus outbreak."But these aren't normal circumstances. Instead, we expect to spend the entirety of that $4 billion, and perhaps a bit more, on COVID-related expenses getting products to customers and keeping employees safe."
Bezos said that"the current crisis is demonstrating the adaptability and durability of Amazon's business as never before, but it's also the hardest time we've ever faced." The e-commerce leader has been prioritizing"essential items" such as household staples and medical supplies, while working to stem price-gouging from third-party sellers.
Neil Saunders of the research firm GlobalData Retail said it was a mixed quarter for Amazon, which has been boosting sales of low-margin items during the crisis to meet consumer demands.
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