Home Amazon Q1 Beats Street As Innovations Launch To Boost Shopper Support
May 2, 2025

Amazon Q1 Beats Street As Innovations Launch To Boost Shopper Support

Posted In: Retail Articles

The first quarter was dynamic for Amazon, with earnings and revenue that surpassed Wall Street expectations and the introduction of additional tools designed to make shopping more satisfying.

Net income was $17.13 billion, or $1.59 per diluted share, versus $10.43 billion, or 98 cents per diluted share, in the year-before quarter.

Amazon earnings topped a Zacks Investment Research analyst consensus estimate of $1.35 while revenue surpassed an estimate of $154.56 billion.

Net product sales were $64 billion while total net sales were $155.67 billion versus $60.92 billion and $143.31 billion, respectively, in the year-prior quarter, the company noted. Operating income was $18.41 billion versus $15.31 billion in the year-earlier period.

North America segment sales increased 8% year-over-year to $92.89 billion as operating income came in at $5.84 billion versus $4.98 billion in the 2024 first quarter.

Among recent developments, Amazon cited in announcing its first quarter results were:

  • Introduction of Alexa+, its next-generation, free-with-Prime-membership Alexa personal assistant that’s smarter and more capable, especially as regards taking actions, than its predecessor.
  • Deal events held worldwide, including the Big Spring Sale in the United States and Canada.
  • The announcement of Amazon’s 11th Prime Day will be held in July.
  • Commitment to a $4 billion investment through 2026 that will expand Amazon’s rural delivery network.
  • Introduction of Saks on Amazon, where customers can shop a curated luxury assortment of fashion and beauty items from brands including Dolce & Gabbana, Balmain, Giambattista Valli, Erdem and Fear of God.
  • Launch of Interests, a generative AI function designed to help shoppers find products that suit their passions and hobbies.
  • Debut of new ways to use the Amazon Shopping app that aid consumers in discovering and purchasing products even from other brands’ websites, even when Amazon doesn’t carry the items directly.

In a conference call, Andy Jassy, Amazon president and CEO, discussed the impact of tariffs on Amazon and retail. He said it is too early to predict the effects. Even in the short term, retailers’ forward buying ahead of changes in duty rates clouds the picture. Then, even in the medium term, the situation remains as no one is sure where tariffs will settle. However, he asserted that the depth and breadth of Amazon’s business, including marketplace, means that products on its platform come from all over the world, which gives consumers more choices and the ability to weigh various options as developments proceed.

As for China tariffs specifically, Jassy maintained that retailers who aren’t buying directly from the country typically buy from companies that are buying from China, then mark up the merchandise involved, rebrand, and sell to U.S. consumers. He asserted that such retailers deal with greater total costs than Chinese companies selling directly to U.S. consumers in the Amazon marketplace and must respond in pricing strategies.

In announcing the first quarter results, Jassy said, “We’re pleased with the start to 2025, especially our pace of innovation and progress in continuing to improve customer experiences. From Alexa+, our next generation of Alexa that’s meaningfully smarter, more capable, and takes actions for customers, to another delivery speed record for our Prime members, to our new Trainium2 chips and Bedrock model expansion that makes it easier for AWS customers to train models and run inference more flexibly and cost-effectively, to our first Project Kuiper satellites successfully launching into low earth orbit in our quest to provide broadband access to hundreds of millions of households in rural areas without it today, we’re continuing to find meaningful ways to make customers’ lives easier and better every day.”

 
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