Amazon profits drop 10% despite sales rise

Amazon has posted a 10% drop in quarterly profits, despite an increase in sales.

Amazon’s profits were at $142m (£75.10m) for the period April to June 2009, down from $158m (£83.56m), having been hit in part by a $51m (£26.97m) settlement with Toyrus.com.

Although profits were down, Amazon reported an increase in revenues, up 14% to £4.65bn (£2.46bn) compared with a year earlier.

Sales of items such as books, CDs and DVDs grew 1% to $2.44bn (£1.29bn) in the second quarter. Electronics and other general merchandise increased 35% to $2.07bn (£1.09bn).

Amazon has forecast third-quarter revenue of $4.75bn (£2.51bn) to $5.25bn (£2.78bn).

Jeff Bezos, founder and CEO of Amazon.com, said, “We’re staying heads down, focused on providing customers low prices, vast selection and fast delivery.”

The results come as Amazon said it has agreed to acquire online shoe retailer Zappos for $850m (£449.5m).

Yesterday Ebay posted a 29% drop in profits to $327.3m (£198m) for the second quarter of 2009.

This story first appeared on newmediaage.co.uk

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