Amazon, the world largest online retailer, has defied the poor economic conditions and reported that its second-quarter profit has more than doubled, reporting a profit of $158 million for the quarter.
The falling dollar led to a jump in the sales of electronic items, these are now much cheaper for consumers outside the US with international sales increasing by 47 per cent.
Amazon also announced that sales could reach $20.1 billion for the year, ahead of the maximum prediction of $20 billion. The company announced that it expects full year profits to amount to $745 million to $920 million.
These second quarter profits equate to $0.37 a share and beat analysts’ predictions by $0.11. The company’s total revenues increased by 41 per cent.
Sales in products such as books, CDs, and DVDs rose by 31 per cent to $2.41 billion while electronics and general merchandise recorded a 58 per cent jump to $1.53 billion.
Amazon may also be benefiting from the soaring cost of petrol, as one analyst from McAdams Wright Ragan told the US media, “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”.
Amazon founder Jeff Bezos, was delighted with the results. He said last week: “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.”
