Amazon recorded punctual fees of approximately $ 1 billion Thursday due to customer yields and rates -related maneuvers.
During the company gains Call, the financial director Brian Ossavsky approached the question and the analysts discussed it.
“During the quarter, we recorded punctual costs linked to certain historical yields of customers who have not yet been resolved and certain costs to receive stocks that have been withdrawn in the first quarter before the prices planned,” said Ossavsky.
Without these costs, the profit margin for the exploitation of the retail activity of North America would have been almost a higher percentage point, said the financial director. This is equivalent to around $ 800 million.
For the international retail trade, he would have had an operating room which was around 0.7% higher, added Ossavsky. This is equivalent to approximately $ 200 million in occasional loads, for a large total of around 1 billion dollars.
What is notable here is that losses arise from two persistent concerns – tariffs and customer yields.
The prices created an unpredictability climate, said Amazon CEO Andy Jassy, when the analyst’s analyst call on Thursday.
Amazon has bought forward for his large business, while some third-party sellers have sent the inventory before the date planned to avoid pricing hikes, he explained.
However, Amazon has not seen the average selling price on Amazon “increases significantly”, noted Jassy.
“None of us know exactly where the prices will settle or when,” he said.
Customer yields have also become a growing problem for Amazon in recent years. The company tries to encourage customers to use less expensive return methods and to fully pre -empt yields by making buyers known on its website when a product is frequently returned.
Amazon’s first quarter results have exceeded Wall Street estimates on Thursday, but future forecasts have become lower than expected. Amazon’s stock dropped by around 2% in exchanges after opening hours.
When an analyst asked if Amazon expects another unique charge for the current quarter, Ossavsky stopped in no do so to answer the question directly.
Instead, he said that Amazon generally sees a higher share -based remuneration in the second quarter and noted additional expenses related to the Kuiper satellite project. The uncertainty induced by prices also makes it difficult to provide precise future advice, he added.
A Spokepserson Amazon refused to comment.
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