US' Amazon posts $18.2 bn Q2 profit, expands fashion & AI capabilities

The North American sales increased 11 per cent to $100.1 billion, while international sales rose 16 per cent to $36.8 billion (11 per cent excluding FX). Operating income climbed to $19.2 billion from $14.7 billion, driven by gains across all segments, Amazon said in a press release.

The net income stood at $18.2 billion, or $1.68 per diluted share, compared with $13.5 billion, or $1.26 per share, a year earlier. Operating cash flow rose 12 per cent to $121.1 billion for the trailing twelve months, although free cash flow declined to $18.2 billion from $53.0 billion.

The company launched a dedicated Nike storefront on Amazon.com, allowing US customers to shop a wide range of footwear, apparel, and accessories. It also expanded its product selection with fashion and beauty brands such as Away, Aveda, Marc Jacobs Fragrances, Milk Makeup, and Origins. In addition, Amazon introduced generative AI tools like ‘Enhance My Listing’ to help sellers keep product descriptions current and compelling—an asset for apparel merchants aiming to optimise visibility and conversion.

Enhanced inventory management powered by AI-driven demand forecasting has improved regional accuracy by 20 per cent and streamlined the placement and delivery of millions of popular items.

“Our conviction that AI will change every customer experience is starting to play out as we’ve expanded Alexa+ to millions of customers, continue to see our shopping agent used by many millions of customers,” said Andy Jassy, president and CEO at Amazon. “Our AI progress across the board continues to improve our customer experiences, speed of innovation, operational efficiency, and business growth, and I’m excited for what lies ahead.”

For the third quarter of 2025, Amazon expects net sales to be between $174 billion and $179.5 billion, or to grow between 10 per cent and 13 per cent YoY. This guidance anticipates a favourable impact of approximately 130 basis points from foreign exchange rates. The operating income is expected to be between $15.5 billion and $20.5 billion, compared with $17.4 billion in third quarter 2024.

This guidance assumes, among other things, that no additional business acquisitions, restructurings, or legal settlements are concluded, added the release.

ALCHEMPro News Desk (SG)