Lockdown lifting slows Amazon’s sales growth during Q2

by Jeremy

Amazon’s revenue growth markedly slowed during the second quarter of 2021 due to Covid-19 lockdown restrictions lifting around the world.   The company posted an overall revenue for Q2 of $113bn, which constitutes a year-on-year rise of 27% compared with last year, while its profit was up 50% overall and hit $7.8bn during the quarter. During the same period last year, the company achieved a revenue growth rate of 40%, as lockdown restrictions worldwide resulted in consumers becoming more reliant on online retail services to source groceries and other goods than ever before.

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In a conference call with analysts to discuss the results, Amazon chief financial officer Brian Olsavsky said the slowdown in the company’s year-on-year sales is the direct result of lockdown restrictions lifting across the world, and “people are getting out of their homes” As a result, the company is expecting a pattern of “difficult” year-on-year revenue comparisons over the coming quarters, as the demand for online retail services starts to level off and return to pre-pandemic levels. “[It’s] the impact of people getting vaccinated and getting out in the world, not only shopping offline but also living life and getting out,” he told analysts on the call transcribed by Seeking Alpha.

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