Net sales increased 22% to $15.70 billion in the second quarter, compared with $12.83 billion in second quarter 2012. Excluding the $392 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales grew 25% compared with second quarter 2012.
Operating income decreased 26% to $79 million in the second quarter, compared with $107 million in second quarter 2012. The unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $18 million.
Net loss was $7 million in the second quarter, or $0.02 per diluted share, compared with net income of $7 million, or $0.01 per diluted share, in second quarter 2012.
A net loss might be bad news for Amazon but it's good news for Jeff Bezos. Sources have told me that his contract is structured to discourage turning a net profit. Whenever that happens, Bezos is required to pay back an equal amount of stock options.
I'm kidding, of course; Amazon tends to make a net profit, though it has usually been a narrow one. During this quarter last year, for example, the net profit was around half a percent of revenue. And in Q1 2013, net profit was a freakishly high 5%.