Sales during the first four hours of Amazon.com Inc (NASDAQ:AMZN)'s annual Prime Day shopping event dropped nearly 14% from the same period last year, according to a report from retail data firm Momentum Commerce, weighing on the e-commerce giant’s shares on Tuesday.
Amazon extended this year’s event to four days from the usual two, a move that may be dispersing spending over a longer period.
Momentum Commerce, which manages brands such as Crocs on the platform, said fewer early deals could have also slowed shopper urgency in the opening hours.
Shares of Amazon were down about 1.5% in afternoon trading.
While the year-over-year comparison is not exact, the early slump contrasts with forecasts that had expected double-digit sales growth. Analysts had anticipated strong demand despite inflation concerns, driven by deep discounts and competition with rival online sales.
Adobe Analytics estimates that total US online spending across Prime Day and competing events from July 8 to 11 will reach $23.8 billion. Still, consumer caution may be growing: a recent survey found that 25% of shoppers plan to skip the event, citing uncertainty around tariffs.
Amazon has not responded directly to the report. However, in a prior statement, a spokesperson said the company “continues to support its many different sellers during a changing retail environment” and remains committed to “offering customers low prices and a wide selection of products.”
Prime Day, first launched in 2015, is one of Amazon’s biggest annual sales events and a barometer of US consumer demand.