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On February 6, 2025, Amazon announced results for 2024 that did not reassure the markets. While a share price had risen by around 40% over the previous 12 months, it fell by 4% after the session, due to a weaker outlook than expected.
The group maintained an overall growth rate, with annual sales of US$638 billion, up 11% at constant rates. This represents an increase of US$63.2 billion in 12 months. With the onslaught of increased competition from Asian players such as Temu, Shein and TikTok Shop, revenue growth was slightly lower than in 2023 (up by 12%). As a reminder, the peak was reached in 2021 (up by 22%) after Covid-19.
Online sales, Amazon’s traditional business, still accounted for the largest share of revenue but continued to decline: they generated 39% of total sales, down from 50.1% in 2020. In 4 years, they have lost 11 points, including -1 point over the past 12 months.
In 2024, Amazon’s net margin almost doubled to US$59.25 billion (up by 95%). This reached 9.3% of turnover, compared with 5.3% a year earlier. The operating margin also increased by 86% to US$68.59 billion. It stood at 10.7% of turnover.
After the waves of redundancies in 2022 and 2023 (27,000 staff losses), Amazon resumed recruitment in 2024 (up by 2%). Since January 2, 2025, the company ended working from home for head office employees, returning to 5 days in an office. C.E.O. Andy Jessy also indicated that the ratio of employees per manager would increase by 15%, in order to “reduce the bureaucratic’ nature.
