Amazon reports $6.6 million loss in Australia

This is probably an adjustment period for Amazon in Australia, opine analysts since it is not the kind of company that accepts failure. It would have long term goals.

Amazon has reported a modest loss in its Australian operations in its latest corporate filings. Its entry into the Australian market in 2017 had made established brick-and-mortar retailers nervous last year.

Amazon’s foray into the Australian market in 2017, had met a steep selldown in traditional retail stocks as well as fevered attention from investors.

The online giant which had launched its website on December 5 in Australia last year, racked up a modest loss of almost $6.6 million ($9 million). From Dec. 5 to Dec. 31, it reported a turnover of A$6.3 million in direct sales against a total Australian retail sales of A$26.3 billion in that month.

However, these figures are unlikely to be indicative of its future performance since the period of too short to be meaningful, said Evan Lucas, chief market strategist at fund manager InvestSmart.

“Amazon is not the kind of company that accepts failure – they have a longer term goal.”

Amazon’s spokesman declined to comment on the filing.

Although Amazon had lodged the filing in April, the results were not reported at that time. They were first reported on Friday by the Sydney Morning Herald newspaper.

Last week, Amazon.com, the world’s biggest e-commerce giant, forecast strong sales for the fall backed by the strength of its overall operations; it posted a Q1 profit of $2.5 billion.

($1 = 1.3569 Australian dollars)

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s