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Amazon misses sales expectations - and anger over diet and sexual enhancement drugs threatens

2021-07-30T00:57:06.374Z

Business has been booming at Amazon during the pandemic. Now, however, sales remained below analysts' expectations. There could also be problems with the sale of diet and sexual enhancers.



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Amazon shipments in distribution center in New York City

Photo: Brendan McDermid / REUTERS

After the departure of the Amazon founder and long-time company boss Jeff Bezos, his successor Andy Jassy is faced with a certain challenge.

Sales of the world's largest online retailer fell short of expectations in the past quarter.

Sales increased by a hefty 27 percent to around 113 billion dollars.

Analysts had expected an average of two billion dollars more.

The net profit climbed from April to June by 48 percent to 7.8 billion dollars.

It's the second highest quarterly result ever.

A further slowdown is expected in the current quarter, said the group, which had so far been very successful in the corona pandemic, on Thursday after the US stock market closed.

In view of the advancing vaccination campaigns around the globe, more and more stores would reopen, it said.

And since people were spending more time outside their four walls again, they would also shop less online.

The announcement was not well received on the stock exchange: Amazon shares initially fell by seven percent after the hours of trading.

Jassy took over the Seattle company on July 5th, replacing Bezos after 27 years at the helm.

Jassy previously headed the extremely successful cloud division AWS, which also scored in the past quarter with a 37 percent increase in sales to $ 14.8 billion.

First the electronic devices - now the diet products

There are also further problems with the online retailer's range.

Most recently, it was about safety concerns, including with third-party electrical products.

Now the US health authority FDA has warned the new Amazon boss against the sale of products to increase potency and weight loss.

These are said to contain harmful ingredients.

"We continue to find potentially dangerous products that are available for purchase and urge stores, websites and online marketplaces, including Amazon, to do more to protect consumers," said the health authority on Thursday (local time) on Twitter.

Amazon then stated that the products had already been removed from the offer and that they wanted to work better with the authority in the future.

The FDA would like Amazon to provide a written response about all of the steps the company has taken to remediate such violations.

jok / Reuters

Source: spiegel

All business articles on 2021-07-30

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