The Top 500 apparel chain plans to expand its reserve online, pick up in store program, as well as its presence in China.
Amazon’s sales grow 22% in Q1, while losses ease
First quarter sales at Amazon.com grew 22% over the first quarter of 2000 to $700 million from $574 million.
First quarter sales at Amazon.com grew 22% over the first quarter of 2000 to $700 million from $574 million, Amazon reported today. Net loss, by GAAP, for the quarter was $234 million, or 66 cents per share. The company said that excluding $114 million, which represents this quarter`s portion of previously announced restructuring and other charges, and excluding a net gain of $23 million for certain other items, the net loss for the quarter would have been $143 million, or 40 cents per share.
First quarter 2000 net loss was $308 million, or 90 cents per share. Gross profit for the quarter was $183 million, compared with $128 million for the first quarter of 2000, an increase of 43%. Pro forma operating loss was $49 million in the first quarter of 2001, compared with a pro forma operating loss of $99 million in the first quarter of 2000. This marks the fifth sequential quarter in which pro forma absolute dollar operating losses have declined, the company says.
Amazon.com ended the quarter with $643 million in cash and marketable securities. Amazon reports having 32 million customers, including 3 million new customers in the U.S. and 1 million internationally. Electronics remained the company`s second-biggest U.S. store, while net sales from Amazon.com`s four international sites rose to $132 million, an increase of 76% from the first quarter of 2000.
"This was another quarter of significant progress for Amazon.com -- we are on track to reach our objective of pro forma operating profitability in the coming December quarter," said Warren Jenson, Amazon.com`s chief financial officer.
On January 30, the company announced a reduction in corporate staffing and a consolidation of fulfillment and customer service center networks. The company took restructuring and other charges of $114 million during the first quarter of 2001, and expects to take additional restructuring and other charges of over $50 million during the second quarter of the year.
Amazon says second quarter net sales are expected to be between $650 million and $700 million, gross margin to be between 23% and 26% of net sales, absolute pro forma operating losses to be flat to slightly improved from the first quarter of 2001 and cash and marketable securities to be approximately $600 million as of June 30, and approximately $900 million at December 31.
For the year, Amazon expects net sales to increase between 20% and 30% over 2000, pro forma operating losses to be between 3% and 6% of net sales, with pro forma operating profitability expected in the fourth quarter.