Retailers downgrade outlook, as inflation and high inventories bite

© Mohamed Ahmed Soliman |

Amazon yesterday reported a Q2 net loss of $2bn, which it said was in part related to its investment in Rivian Automotive electric delivery vehicles. Net sales, meanwhile, increased 7% to $121.2 bn.

In an earnings call, which showed how wide the Amazon business reaches, there was little of note for the transport and logistics industry. Of the $60bn spent on capital investments, some $15bn went on transport, but no further details were available. CFO Brian Olsavsky said: “For the second quarter, incremental costs were in line with our expectations, at approximately $4bn when compared with Q2 21. Inflationary pressures remained at elevated levels in Q2, similar to what we saw in Q1. These include pressures from higher fuel, trucking, air, and ocean shipping rates, which we expect will continue into Q3.”

You can see Amazon’s full results here.

There was more of interest in recent updates from major US retailers, including Target and Walmart, both of which are discounting stock following high levels of inventory, which was combined with lower consumer demand. Best Buy, which also downgraded its forecasts, said it had flat inventory levels, but inflation and low demand had affected its growth, reports CNBC. Worth a read.