Retailers looking for their lost market share should start in Seattle at Amazon’s headquarters.
The company’s total sales rose 22.6 percent to $35.7 billion in the first quarter, including a 15.3 percent rise in product sales to $23.7 billion.
The web giant, which is notorious for favoring investments to keep growing its business over profits, saw its earnings increase 41 percent to $724 million.
Among Amazon’s long list of quarterly accomplishments was nods to its expansion in India and deal to stream some National Football League games to Prime members as well as a couple of fashion-related items.
The company acknowledged the roll out of private label apparel, including Goodthreads, Amazon Essentials, Paris Sunday, Mae, Ella Moon, Buttoned Down and Lark & Ro.
It also touted its new Echo Look, which is more or less a hands-free, artificially intelligent device that can help you take selfies and choose an outfit.
Amazon’s interest in fashion has proven to be very broad. The company also has a live-stream style show akin to a QVC show and also recently received a patent for an a method of on-demand apparel manufacturing that, if ever widely adopted, could completely revolutionize the industry.
But for now, its business is being driven by the company’s web hosting business.
Moody’s lead retail analyst Charlie O’Shea said the company’s results reflected “continuing short-term investment in longer-term initiatives, which we believe is a solid strategy.”
He noted that the company ended the quarter with more than $21 billion in cash and marketable securities.
“Prodigious growth at AWS was achieved while margins also expanded, with the slight margin compression on the North American product side reasonable given the operating environment across retail, as well as obvious investments across the platform,” O’Shea said.
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