For its second quarter ended June 30, 2015, net sales at the world’s biggest online retailer Amazon.com drove up 20 per cent year over year. Net sales increased 20 per cent to $23.18 billion in the second quarter of 2015, compared with $19.34 billion in second quarter 2014. Excluding the $1.39 billion unfavourable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales soared 27 per cent over the prior year second quarter. In the reporting quarter, operating income totaled to $464 million as against operating loss of $15 million in the corresponding period of last year. The online retailer reported net income at $92 million in the quarter under review or $0.19 per diluted share compared with net loss of $126 million or $0.27 per diluted share in the second quarter of 2014. Operating cash flow soared 69 per cent to $8.98 billion for the trailing twelve months from $5.33 billion for the trailing twelve months ended June 30, 2014. Free cash flow also surged to $4.37 billion for the trailing twelve months, compared with $1.04 billion for the trailing twelve months ended June 30, 2014. Common shares outstanding plus shares underlying stock-based awards totaled 488 million on June 30, 2015, compared with 480 million one year ago. In the quarter, the Council of Fashion Designers of America held the inaugural showcase for American men’s fashion, New York Fashion Week: Men’s, which was presented by Amazon Fashion and others. Amazon India continues to be Amazon’s fastest growing geography in sales, and India’s largest online store with over 25 million products. Amazon announced the Global Selling Program for sellers in India, which enables them to access hundreds of millions of customers around the world. For the third quarter of 2015, Amazon expects net sales to be between $23.3 billion and $25.5 billion, or to grow between 13 and 24 per cent compared with third quarter of 2014. The online retailer has projected its operating income or loss to be between a loss of $480 million and income of $70 million against an operating loss of $544 million in the prior year third quarter. “This guidance includes approximately $580 million for stock-based compensation and amortisation of intangible assets,” it explained. Amazon also added that it assumes, among other things, that no additional business acquisitions, investments, restructurings, or legal settlements are concluded.
