Despite some disruptions in its supply chain, online sales at Amazon jumped 48% in the second quarter over the comparable period in 2019, hitting $45.9 billion. Sales through third-party sellers rose even more, soaring 52%, to $18.2 billion.
Total sales in the quarter rose 40% over 2019, to $88.9 billion, and operating income jumped 87%, to $5.8 billion. The results exceeded analysts’ expectations, and as a result, Amazon’s stock price rose 5% in overnight trading. The company’s stock price closed Thursday at $3,051.88 per share.
The only financial blemish in the second quarter was in sales through physical stores, which fell 13% compared to 2019. The majority of those sales come from Whole Foods, although Amazon also operates 21 bookstores; one of those stores, on Columbus Circle in New York City, is still temporarily closed. According to the Amazon Books website, the company is planning to open new bookstores in Friendswood, Tex., and Broomfield, Colo., later this year.
In discussing results from the first quarter earlier this year, Amazon executives had said they could lose money in the second quarter because of plans to spend about $4 billion on protective equipment for staff and other expenses related to Covid-19. In Amazon's earnings release, CEO Jeff Bezos said the company lost more than $4 billion to Covid-related costs, but the company still managed to boost earnings dramatically. “This was another highly unusual quarter, and I couldn’t be more proud of and grateful to our employees around the globe,” Bezos said in a statement.
Amazon released its results the day after Bezos and the CEOs of Apple, Facebook, and Google testified before Congress to address the tactics they have used to achieve dominance in their particular markets.
For the third quarter, Amazon projected that total sales will increase by 24% to 33% over the comparable quarter in 2019.