Amazon Spent $2 Billion To Handle Labor Shortages and Supply Chain Issues in Q3

Amazon might be the world’s largest retailer, but the e-commerce giant is facing the same supply chain issues and labor shortages as every other company across in industry. In its third quarter report shared on Thursday, Amazon missed earnings estimates. Net income for Q3 decreased to $3.2 billion, or $6.12 per diluted share, versus $6.3 billion in Q3 of 2020. This missed forecasts from analysts surveyed by Yahoo Finance, who predicted an EPS of $8.92. The hit to income was partly a result of costs related to inflation, labor shortages, and supply chain slowdowns. Amazon CEO Andy Jassy said that while these costs had an impact on short term profits, the investment would ultimately set up Amazon for long-term success. “It’ll be expensive for us in the short term, but it’s the right prioritization for our customers and partners,” Jassy said in a statement.  In the last two weeks, Skechers, VF Corporation, Deckers, Columbia Sportswear, and Crocs all highlighted supply chain impacts in their earnings releases. Despite the challenges, many executives expressed optimism about being able to emerge from the situation and enter the holidays on a positive note. In a call with investors, Amazon SVP and CFO Brian Olsavsky said that labor shortages and

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