Amazon net profit down 10 per cent
Amazon posted a 10 percent drop in quarterly net profit on Thursday, a day after the US online retail giant announced it was buying Internet shoe store Zappos.com in the biggest purchase in its history.
By Agencies |
NEW YORK: Amazon posted a 10 percent drop in quarterly net profit on Thursday, a day after the US online retail giant announced it was buying Internet shoe store Zappos.com in the biggest purchase in its history.
Amazon, in a statement, said net profit fell to 142 million dollars in the second quarter, or 32 cents per share, from 158 million dollars, or 37 cents per share, a year ago.
Amazon said net sales rose 14 percent during the quarter to 4.65 billion dollars, slightly less than the 4.69 billion dollars forecast by analysts.
"We're staying heads down focused on providing customers low prices, vast selection, and fast delivery," said Amazon founder and chief executive Jeff Bezos.
The Seattle-based Amazon said operating income decreased 27 percent to 159 million dollars in the second quarter.
It said the unfavorable impact from changes in foreign exchange rates on operating income was 30 million dollars. A 51-million-dollar settlement with Toysrus.com also had an impact on operating income in the quarter.
The company noted that operating income for the second quarter of 2008 included a 53-million-dollar non-cash gain from the sale of its European DVD rental assets.
Amazon said it expected net sales of between 4.75 billion dollars and 5.25 billion dollars in the third quarter, an increase of between 11 percent and 23 percent over the same period last year.
It said operating income was expected to range from 120 million dollars and 210 million dollars.
The forecast does not take into account Amazon's purchase of Zappos.com for 847 million dollars.
Amazon, in a statement, said net profit fell to 142 million dollars in the second quarter, or 32 cents per share, from 158 million dollars, or 37 cents per share, a year ago.
Amazon said net sales rose 14 percent during the quarter to 4.65 billion dollars, slightly less than the 4.69 billion dollars forecast by analysts.
"We're staying heads down focused on providing customers low prices, vast selection, and fast delivery," said Amazon founder and chief executive Jeff Bezos.
The Seattle-based Amazon said operating income decreased 27 percent to 159 million dollars in the second quarter.
It said the unfavorable impact from changes in foreign exchange rates on operating income was 30 million dollars. A 51-million-dollar settlement with Toysrus.com also had an impact on operating income in the quarter.
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The company noted that operating income for the second quarter of 2008 included a 53-million-dollar non-cash gain from the sale of its European DVD rental assets.
Amazon said it expected net sales of between 4.75 billion dollars and 5.25 billion dollars in the third quarter, an increase of between 11 percent and 23 percent over the same period last year.
It said operating income was expected to range from 120 million dollars and 210 million dollars.
The forecast does not take into account Amazon's purchase of Zappos.com for 847 million dollars.
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