Amazon, as we all know, turned grocery retailer in addition to its e-commerce prowess amidst its fourth quarter of fiscal 2017. While those numbers have yet to hit, the company still saw a successful close with new milestones marked.
Amazon, amongst its achievements, saw a huge jump in its net income. The fourth quarter alone clocked $1.9 billion, compared with a net income of $749 million from the same time period last year.
“Our 2017 projections for Alexa were very optimistic, and we far exceeded them. We don’t see positive surprises of this magnitude very often—expect us to double down,” said Jeff Bezos, Founder and CEO, in the financial report. “We’ve reached an important point where other companies and developers are accelerating adoption of Alexa. There are now over 30,000 skills from outside developers, customers can control more than 4,000 smart home devices from 1,200 unique brands with Alexa, and we’re seeing strong response to our new far-field voice kit for manufacturers. Much more to come and a huge thank you to our customers and partners.”
Additional highlights from the quarter included:
The results exclude any impact from Whole Foods, but do include a provisional tax benefit. The impact of the U.S. Tax Cuts and Jobs Act of 2017 was approximately $789 million, according to the report.
In 2017, more than five billion items shipped with Prime worldwide with more new paid members having joined the program than any previous year—both worldwide and in the U.S.
Prime members were privy to particular deals through Amazon’s purchase of Whole Foods, which the Wall Street Journal recently reported as having helped to boost its grocery sales.
As for this coming fiscal year, net sales are expected to be between $47.75 billion and $50.75 billion, or to grow between 34% and 42%, compared with first quarter 2017. Operating income is expected to be between $300 million and $1.0 billion, compared with $1.0 billion in first quarter 2017 assuming “no additional business acquisitions, investments, restructurings, or legal settlements are concluded.”
Deli Market News will continue to report the latest as we look to how this will affect Amazon’s business and others in our industry at large.