Despite Global Pandemic Amazon Reports Doubling of Profit in Q2 2020
Given the current state of the world it would be very easy to assume that no business could be thriving in this enviroment. But then again if any business could succeed during this time, I’m somehow not surprised that it’s Amazon.
Indeed Amazon’s reporting that in Q2 of 2020 not only has their profit doubled over last years figure in the same quarter to a rediculous $5.2 billion, but that their net sales have also increased by 40% to $88.9 billion. And all that whilst issuing a warning earlier this year to investors that they should prepare for a potential loss in Q2 due to COVID-19 related expenses.
“This was another highly unusual quarter, and I couldn’t be more proud of and grateful to our employees around the globe,” said Jeff Bezos Amazon’s CEO in a statement.
These figures are extremely impressive given the fact that Amazon reportedly spent over $4 billion this quarter on what Bezo’s has described as “incremental COVID-19 related costs in the quarter to help keep employees safe and deliver products to customers”.
Since March Amazon claims that they’ve also added 170,000 new jobs of which 125,000 they claim will transition into full-time employees. In addition Amazon distributed a one-time $500 million bonus to their frontline workers and partners and they claim to have donated $28 million to the Black Lives Matter cause.
Finally Amazon claims that they’ve increased their grocery delivery capacity by over 160% and that they’ve tripled their grocery pickup locations this quarter. In reponse their online grocery sales have tripled this quarter over last years figure.
Given that people are trying to limit their time spent outside during these wild times it probably makes sense that Amazon would see a greater demand from their customers. Unfortunately it would probably also make sense that brick and mortar businesses without any online presence are probably struggling more than ever at the moment.
All in all Amazon can be proud that they are one of the only company’s in the world that can say they actually grown this quarter. I look forward to seeing Amazon’s Q3 results as this pandemic doesn’t appear to be going away anytime soon.
Sources: The Verge, Digital Trends
