Amazon Reports 31% Hike in Net Sales for 2017

Amazon.com Inc. Feb. 1 announced a 31% spike in net sales for 2017, to $177.9 billion, compared with $136.0 billion in 2016. Excluding a $210 million favorable impact from year-over-year changes in foreign exchange rates throughout the year, net sales increased 31% compared with 2016.

Operating income decreased 2% to $4.1 billion, Amazon said, compared with operating income of $4.2 billion in 2016. Net income was $3.0 billion, or $6.15 per diluted share, compared with net income of $2.4 billion, or $4.90 per diluted share, in 2016.

In the fourth quarter ended Dec. 31, 2017, net sales rose 38% to $60.5 billion, compared with $43.7 billion in fourth quarter 2016. Excluding  a $1.1 billion favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 36% compared with sales in the fourth quarter of 016.

Operating income in the fourth quarter of 2017 increased 69% to $2.1 billion, compared with operating income of $1.3 billion in 2016. Net income was $1.9 billion in the fourth quarter, or $3.75 per diluted share, compared with net income of $749 million, or $1.54 per diluted share, in Q4 2016.

Amazon says that in 2017, more than 5 billion items shipped with Prime worldwide. More new paid members joined Prime in 2017 than any previous year – both worldwide and in the United States, the company said.

Fire TV Stick and Echo Dot were the best-selling products in 2017 across all of Amazon. Customers purchased tens of millions of Echo devices last year.

In other home entertainment-related news announced by Amazon, the company said that the Prime Video app is now available on Apple TV in over 100 countries.

NFL Thursday Night Football on Amazon Prime Video saw a total of 18.4 million views in 11 games. Prime members in more than 200 countries and territories streamed games on living room devices, including smart TVs and Fire TVs, as well as the Prime Video mobile app and the web.

CBS All Access is now available through Amazon Channels, the over-the-top streaming subscription program for Prime members. CBS is the first Amazon Channels partner to offer a linear feed of a subscriber’s local broadcast station in addition to video on-demand.

Amazon Prime Video continues to launch local original series, including “Breathe” in India, as well as “Pastewka” and “Glory is Gone” in Germany.

Amazon also pointed out that the Amazon Studios’ original movie The Big Sick, written by Emily V. Gordon and Kumail Nanjiani, was nominated for an Academy Award for Best Original Screenplay.

For the first quarter, the company said in a news release, 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. This guidance anticipates a favorable impact of approximately $1.2 billion or 330 basis points from foreign exchange rates. Operating income is expected to be between $300 million and $1.0 billion, compared with $1.0 billion in first quarter 2017.

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