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	<title>Retail News Update &#187; free shipping</title>
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		<title>Amazon profit doubles on sales of electronics</title>
		<link>http://artrm.com/retail-news/2008/07/amazon-profit-doubles-on-sales-of-electronics/</link>
		<comments>http://artrm.com/retail-news/2008/07/amazon-profit-doubles-on-sales-of-electronics/#comments</comments>
		<pubDate>Sat, 26 Jul 2008 07:44:42 +0000</pubDate>
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				<category><![CDATA[News & Articles]]></category>
		<category><![CDATA[Amazon Prime]]></category>
		<category><![CDATA[Amazon.com]]></category>
		<category><![CDATA[electronics]]></category>
		<category><![CDATA[free shipping]]></category>
		<category><![CDATA[McAdams Wright Ragen]]></category>
		<category><![CDATA[Media sales]]></category>

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		<description><![CDATA[Amazon.com, the world’s largest Internet retailer, reported that its second-quarter profit more than doubled as a jump in sales of electronic items combined with a rise in overseas revenues as the cheap dollar made products cheaper for customers outside the US. The retailer, which also benefited from a $53 million gain from the sale of [&#8230;] <a class="more-link" href="http://artrm.com/retail-news/2008/07/amazon-profit-doubles-on-sales-of-electronics/">&#8595; Read the rest of this entry...</a>]]></description>
				<content:encoded><![CDATA[<p>Amazon.com, the world’s largest Internet retailer, reported that its second-quarter profit more than doubled as a jump in sales of electronic items combined with a rise in overseas revenues as the cheap dollar made products cheaper for customers outside the US. </p>
<p>The retailer, which also benefited from a $53 million gain from the sale of some European DVD rental assets, defied the weakening US economy to report a $158 million profit for the period, although the sales growth was driven by sales abroad. </p>
<p>Furthermore, Amazon said that sales could reach $20.1 billion for the year, slightly ahead of the maximum prediction of $20 billion earlier in the year. The retailer expects full-year profits of $745 million to $920 million. </p>
<p>The second-quarter profit, which equated to $0.37-a-share, beat analysts estimates by $0.11, and compared to $0.19-a-share profit income a year earlier. The group’s overall revenues increased by 41 per cent to $4.06 billion. Meanwhile, international sales rose by 47 per cent to $1.89 billion. Without the impact of the weak dollar, overseas revenue grew by 34 per cent. </p>
<p>So-called media sales, which comprise items such as books, CDs and DVDs, rose by 31 per cent to $2.41 billion across the group, while electronics and general merchandise recorded a 58 per cent jump to $1.53 billion. </p>
<p>Scott Devitt, an analyst with Stifel Nicolaus, described the results as being “good, very solid”. </p>
<p>Amazon may also be benefiting from the soaring cost of petrol, according to Dan Geiman, an analyst at McAdams Wright Ragen. </p>
<p>“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.” </p>
<p>Jeff Bezos, founder and chief executive of Amazon, also seemed pleased with the results. </p>
<p>“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.” Prime Membership offers free two-day shipping of items for an annual fee.</p>
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