Amazon’s total revenue for the third quarter, ended September 30, jumped 34%, to $43.7 billion, compared to the third quarter of 2016. The gain includes just under $1.3 billion in revenue from Whole Foods, which the company officially acquired on August 28, 2017,
Despite the huge sales gain, Amazon’s operating income fell to $347 million in the most recent quarter, from $575 million in last year’s third period. (Whole Foods added $21 million to operating income.) Even with the drop in operating earning, Amazon’s sales and earnings growth both beat analysts’ expectations and the company’s stock rose by almost 100 points.
The addition of Whole Foods prompted Amazon to add a fifth business segment to its financial reporting–physical stores, which the company described as a place where customers “physically select items in a store.” The $1.28 billion recorded in the retail segment also includes sales from the company’s 12 Amazon Books outlets. More Amazon Books stores are set to be opened soon.
Sales through Amazon’s online stores grew 22% in the quarter, compared to the third quarter of 2016, reaching $26.39 billion. Third-party sellers contributed nearly $8 billion to the quarter’s revenue, a gain of 40% over last year’s third quarter.
Looking ahead to the fourth quarter, Amazon gave its usual wide-ranging projections. It said revenue, including Whole Foods, should grow between 28% and 38%, while operating income would likely be between $300 million and $1.65 billion. In last year’s fourth quarter, income was $1.3 billion.