After an incredibly successful second quarter of fiscal 2020, it has been revealed Amazon kept its promise to spend billions of dollars on Covid-19 remediation.
The e-tail giant reported net income of $5.2bn, up 100 per cent from $2.6bn the second quarter of fiscal 2019. Net sales increased 40 per cent to $88.9bn, compared with $63.4bn in second-quarter 2019. Excluding a $582M unfavourable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 41 per cent compared with second quarter 2019. Online grocery sales tripled in the second quarter when compared with the same period the prior year.
Amazon also spent more than $4bn on a variety of initiatives to assist employees in dealing with Covid-19 and ensure packages continued to reach customers in as timely a manner as possible. These included a one-time “Thank You” bonus totalling over $500M to all frontline employees and delivery contractors who were with the company throughout the month of June, a new family backup care benefit through Care.com to 650,000 full and part-time Amazon and Whole Foods Market employees in the US, technology to help regulate social distancing in warehouses, and donations of PPE, meal deliveries, and money for social justice organisations.
“This was another highly unusual quarter, and I couldn’t be more proud of and grateful to our employees around the globe,” said Jeff Bezos, Amazon Founder and CEO. “We’ve created over 175,000 new jobs since March and are in the process of bringing 125,000 of these employees into regular, full-time positions. And third-party sales again grew faster this quarter than Amazon’s first-party sales. Lastly, even in this unpredictable time, we injected significant money into the economy this quarter, investing over $9bn in capital projects, including fulfilment, transportation, and AWS.”