Amazon sales were up +7% in the three months to June, delivering a better performance than had been anticipated.

Amazon reported its second quarterly loss in a row yesterday. Nevertheless, the company’s share price gained over 10% in after-hours trading based on the stronger than expected earnings. Sales for the three months ending in June increased by +7% to $121b, compared with $113.1b in the second quarter of 2021. The increase marks one of the slowest growth periods for Amazon in its history: however the performance was better than had been widely anticipated.

Earlier this year, when Amazon reported its Q1 earnings, the company’s share price dropped markedly after announcing its first loss since 2015 and admitting that sales had slowed. Amazon’s chief executive officer, Andy Jassy, was more positive yesterday: “Despite continued inflationary pressures in fuel, energy and transportation costs, we’re making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfilment network.”

Despite an increase in sales, the company reported a second quarterly loss of $2b compared with a $7.8b profit for the same period in 2021. This follows a $3.8b loss in Q1. According to Amazon, a significant contributor to these losses was the company’s investment in Rivian Automotive, an electric vehicle manufacturer.

The company’s online stores business reported a 4% decline for the quarter as it faced slowing consumer demand and rising costs. The company has also admitted that it expanded too aggressively during the pandemic.

However, Amazon remains optimistic about the remainder of the year, claiming that it expects to post third-quarter revenue between $125b and $130b, representing growth of 13% to 17%.