US e-commerce giant Amazon has reported a net sales increase of 11% to $638.0bn during the full year 2024 (FY24) against $574.8bn in 2023.
North American and International segments reported sales increases of 10% and 9% respectively, with the latter figure adjusting to a 10% rise after accounting for foreign exchange rate impacts.
The company’s operating income for the full fiscal year surged to $68.6bn from $36.9bn a year previously, with North America contributing an operating income of $25.0bn and the international segment contributing $3.8bn.
Net income for the year increased to $59.2bn, which translates to $5.53 per diluted share, climbing from $30.4bn or $2.90 per diluted share in FY23.
In the fourth quarter (Q4) FY24, Amazon recorded a robust 10% increase in net sales to $187.8bn, up from $170.0bn during the same period of the previous year.
This growth trajectory persisted despite a $0.9bn drag due to unfavourable foreign exchange rates. Adjusted for this, figures show an 11% rise in net sales year-on-year.
During the quarter, the North American segment of Amazon reported a 10% uptick in sales, reaching $115.6bn, while the international segment saw an 8% climb to $43.4bn.
The company’s operating income for the quarter saw a significant improvement at $21.2bn - up from the $13.2bn recorded in the fourth quarter of 2023.
A closer look at segment performance during Q4 indicates that operating income in North America soared to $9.3bn from $6.5bn in the same quarter of the previous year.
The international segment also reversed its fortunes, posting an operating income of $1.3bn compared to a loss of $0.4bn in the fourth quarter of 2023.
The company’s net income demonstrated a strong upward trend, doubling to $20.0bn or $1.86 per diluted share, up from $10.6bn or $1.00 per diluted share in the corresponding quarter of the previous year.
Amazon president and CEO Andy Jassy stated: “The holiday shopping season was the most successful yet for Amazon and we appreciate the support of our customers, selling partners and employees who helped make it so.”
Looking ahead to the first quarter of 2025, Amazon anticipates net sales between $151.0bn and $155.5bn - a growth rate of 5% to 9% compared with the first quarter of 2024.
The company expects operating income to be between $14.0bn and $18.0bn, potentially falling short of the $15.3bn achieved in the first quarter of 2024.
In January 2024, Amazon faced a proposed class action lawsuit alleging that the company covertly monitored and commercialised the detailed location data of its consumers in California.
