Amazon profit rise thanks to electronic sales
July 27, 2008
The world’s largest internet retailer Amazon.com has reported doubled profits for its second quarter. This is largely thanks to a jump in sales of electronics items and also a rise in overseas revenues as the cheap dollar made items cheaper for customers outside America.
The retailer also sold some of its European DVD rental assets. Amazon has defied a weakening world economy to report a $158 million profit. They have also said that sales could reach $20.1 billion which is slightly above the $20 billion predicted earlier this year. Amazon expects full year profits of $745 million to $920 million. The group’s overall sales rose to $4.06 billion, which is 4% rise. Media sales, books, DVD’s and CD’s, rose by 31% to $2.41 billion. Electronics sales rose 58% to $1.53 billion.
An analyst at Stifel Nicolaus, Scott Devitt said the results were “good, very solid”.
According to Dan Geirman, an analyst at McAdams Wright Ragen, Amazon could be benefiting from the rising cost of petrol. Mr Geirman said “They’re still doing extremely well [despite the economy]. If gas prices are high, customers are less likely to hop in their cars and head down to the Barnes and Noble or a department store.” Founder and chief executive of Amazon, was also happy with the news. He said “Customers continue to take advantage of our low prices, free shipping and Amazon Prime. Amazon Prime membership costs less than a tank of gas - more and more customers are joining the programme and enjoying its benefits.”
Visit www.amazon.com for more information on the company and their products.
Comments
Got something to say?
Advertisement