Amazon’s net sales increased 25 percent to $38 billion in the second quarter, ended June 30, compared with $30.4 billion in Q2 2016.
But profits decreased 51 percent to $628 million in the quarter, compared with $1.3 billion in the prior-year period, as it continues to invest in a series of wide-ranging initiatives. The e-tailer also indicated this trend will continue in Q3, projecting an operating income loss of $300 million to $400 million.
Broken out, net product sales were $24.7 billion, up 17 percent year over year from $21.1. Net service sales were $13.2 billion, up 42 percent from $9.3 billion.
North American net sales were $22.4 billion, up 27 percent from $17.7 billion in the prior-year period.
Net income was $197 million in the quarter, or $0.40 per diluted share, vs. net income of $857 million, or $1.78 per diluted share, in Q2 2016.
As is customary in Amazon’s quarterly financials, founder and CEO Jeff Bezos ticked off a list of the company’s most recent introductions that have contributed to its growth. In the case of Q2, this included the launch of the Echo Look and the video-capable Echo Show, the addition of calling and messaging via Alexa to all Echo devices, a refresh of its Fire tablets, and the opening of new bookstores.
Bezos also made headlines yesterday with the news he had replaced Bill Gates as the world’s richest man (but only temporarily).