Twenty-three new warehouses and faster shipping times put a dent in Amazon’s profits in its third quarter, the Seattle-based e-tailer said Thursday. Despite net sales increasing 29 percent to $32.7 billion in the three months ended Sept. 30, net income only reached $252 million, or 52 cents per diluted share. While that was an improvement over $79 million a year ago, it was a steep drop from Q2’s $857 million and $1.78 per diluted share.
Amazon is expecting revenue to range between $42 billion and $45.5 billion during the crucial holiday quarter, but Thomson Reuters analysts were anticipating $44.6 billion. The company’s share price (AMZN) plunged more than 4 percent in early trading Friday.
Net sales increased 11 percent to $1.76 billion for HanesBrands in the third quarter ended Oct. 1, driven by innerwear and acquisition-related international growth, partially offset by a drop-off in the activewear and direct-to-consumer segments. Net income increased 7.2% to $173.9 million or 45 cents per diluted share, up from $162.2 million or 40 cents per diluted share a year ago.
Despite cutting its full-year outlook on Thursday to net sales between $6.15 billion and $6.18 billion, compared with prior guidance of $6.15 billion to $6.25 billion, HanesBrands stock (HBI) jumped more than 10 percent Friday morning.
Yarn producer Unifi (UFI) posted a 17 percent increase in profits Thursday, even with lower earnings from Parkdale America. Net income for the first quarter ended Sept. 25 hit $9.4 million, compared to $8 million last year, or 51 cents per diluted share versus 43 cents per diluted share. But while strong PVA performance in Asia and Brazil caused consolidated volumes to increase 11 percent, it wasn’t enough to thwart soft market conditions domestically and a decline in raw material prices pushed net sales down from $162.2 million to $160 million.
Cabela’s (CAB) said Wednesday that a 3.6% increase in Internet and catalog sales offset a 1.8% decrease in sales at stores open at least one year in the third quarter, which helped total revenue rise 7.6% to reach $996.5 million. With that being said, the outdoor gear seller’s profits plunged 35.4% to $28.2 million, down from $43.7 million in the year-ago quarter. Earlier this month, rival Bass Pro Shops announced it would acquire Cabela’s in a deal valued at $5.5 billion.
A shift in the timing of U.S. wholesale shipments combined with bankruptcies of certain American wholesale customers resulted in a double whammy for Columbia Sportswear (COLM) in the quarter ended Sept. 30 and earnings suffered as a result. Sales slipped 3 percent, down from $767.6 million a year ago to $745.7 million, and profits fell from $91.1 million or $1.28 per diluted share to $83.6 million or $1.18 per diluted share.
Luxury goods conglomerate Kering announced Tuesday that third-quarter revenue jumped 10.5% to 3.19 billion euros ($3.5 billion), thanks to double-digital comparable sales growth in all markets but Japan. Gucci and Yves Saint Laurent performed particularly well, posting 17 percent and 33.9% increases respectively, while Puma rose 10.8%.