In the first quarter ended March 31, net sales at Amazon rose 8.6%, to $155.7 billion. Excluding unfavorable exchange rates, net sales rose 10%. Net income rose 64.2%, to $17.1 billion. Net sales in North America rose 7.6%, to $92.9 billion. Net international sales rose 4.9%, to $33.5 billion. And net sales at Amazon Web Services rose 16.9%, to $29.3 billion.
The overall sales gain was the slowest since the worst days of the pandemic, and net sales growth in North America was the lowest ever, the New York Times observed.
The company estimated that in the second quarter, net sales should grow 7%-11%, to between $159 billion and $164 billion.
Amazon's sales and income were above analysts' estimates. But in after-hours trading, the company's stock slipped 3%, to about $185 a share, because second-quarter estimates and AWS sales were lower than expected. Like many companies, Amazon is uncertain how Trump administration tariffs will affect the economy and sales. In a conference call with analysts, Amazon CEO Andy Jassy said, "Obviously, none of us know exactly where tariffs will settle or when."
As the Wall Street Journal noted, the high tariffs on China may have a large effect on Amazon: "More than 60% of the company's e-commerce sales come from third-party merchants that get many of their products from China and then sell them on Amazon's website. The sellers are bearing much of the tariff burden. Some have tested how much they can raise their prices without being penalized by Amazon, which has historically disciplined merchants if they sell too high."
The Journal quoted Jassy as saying that Amazon's "large selection of items will help it handle any impact from the import levies. Customers may end up favoring some unfamiliar brands, he added, because they are charging lower prices."
Some observers have speculated that Amazon sales in the first quarter might have been helped by consumers stocking up on items that they believe will become more expensive because of tariffs.