Amazon.com Inc. reported its North American merchandise sales accelerated in the second quarter as it launched its Prime same-day delivery in 14 U.S. metro areas, serving more than 500 cities and towns.
The service enables Amazon Prime subscribers to choose from over one million items and order as late as noon to receive their order on the same day. The accelerated service is offered for free. Amazon also said it expanded its Prime Now service, which offers Prime members one-hour delivery on thousands of daily essentials, to nine more cities, including London, England.
Amazon.com reported sales of Electronics and Other General Merchandize increased 31.7 percent to $10.9 billion in North America, compared with the second quarter ended June 30 2014, when sales grew 29.0 percent. Excluding the effect of foreign exchange rates, sales grew 32 percent, compared with 29 percent a year earlier.
Operating margins for the company's North American segment, reflecting results from sales of both products and services, reached 5.1 percent, up from 3.0 percent a year earlier.
Amazon.com ended the quarter with $10.3 billion in cash and cash equivalents, down from $14.6 billion from December 31, 2014. Inventory turnover for the trailing 12 month period ended June 30 reached 8.9 percent, down 10 basis points from a year earlier. The company said net shipping costs reached 4.4 percent of net sales, down 60 basis points from the second quarter of 2014.
| AMAZON.COM, INC. | |||||||||||||||||||||||
| Supplemental Financial Information and Business Metrics | |||||||||||||||||||||||
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| (unaudited) | |||||||||||||||||||||||
| Y/Y % | |||||||||||||||||||||||
| Q2 2014 | Q3 2014 | Q4 2014 | Q1 2015 | Q2 2015 | Change | ||||||||||||||||||
| Segments | |||||||||||||||||||||||
| North America Segment: | |||||||||||||||||||||||
| Net sales | $ | 10,994 | $ | 11,699 | $ | 17,333 | $ | 13,406 | $ | 13,796 | 26 | % | |||||||||||
| Net sales — Y/Y growth, excluding F/X | 25 | % | 23 | % | 21 | % | 24 | % | 26 | % | N/A | ||||||||||||
| Net sales — TTM | $ | 50,834 | $ | ||||||||||||||||||||
