(NEW YORK) — Earnings season is all about the bottom line, except if you’re Amazon.
The retail and entertainment giant reported blow-out sales, but tiny profits. First quarter revenues were $19.74 billion — up 23 percent compared to the year before. Earnings, however, were a tiny percentage of overall sales and fell 19 percent to $146 million.
Amazon was stung partially by the rising cost of shipping.
The Wall Street Journal reports that Amazon has started is its own delivery operation and could one day compete against FedEx and UPS. Test runs are said to have been made with trucks doing drop-offs in several cities, including San Francisco and New York.
“Delivering its own packages will give Amazon, hurt by Christmas shipping delays, more control over the shopping experience,” says the Journal.
Amazon executives emphasized growth and investment in future projects. Apart from its huge retail business, Amazon is looking to its cloud computing division, Kindle devices and streaming entertainment to boost future revenues.
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Madison Park, Keith Allen and Andreas Preuss, CNN