Amazon.com Q2 net income shoots up 255%
Harry Potter helped Amazon.com turn in a solid second quarter financial performance with net income rising by 255% and net sales up by 35%.
For the quarter Amazon, No. 1 in the Internet Retailer Top 500 Guide, is reporting net income of $78 million on net sales of $2.89 billion vs. net income of $22 million on net sales of $2.14 billion in the prior year. “Our strong revenue growth this quarter was fueled by low prices and the added convenience of Amazon Prime,” says Amazon CEO Jeff Bezos.
Amazon’s worldwide electronics and other general merchandise grew 56% to $970 million in Q2 from $620 million in the prior year and increased to 34% of worldwide net sales compared with 29% in the second quarter of 2006, the retailer says. North America segment sales, which include Amazon’s U.S. and Canadian sites, totaled $1.6 billion, up from $1.15 billion in the second quarter 2006.
International sales were also strong. For the quarter overseas sales from Amazon’s e-commerce sites in the United Kingdom, Germany, Japan, France and China were $1.28 billion, up 30.3% from $982 million in the second quarter of 2006. The widely anticipated debut of “Harry Potter and the Deathly Hallows” also helped to drive sales. Amazon received orders for more than 2.2 million copies of “Harry Potter and the Deathly Hallows” worldwide in advance of its July 21 release, making it Amazon’s largest new product release, the retailer says.
Amazon is anticipating that third quarter web sales will range from $3 billion to $3.17 billion and between $13.8 billion and $14.3 billion for the year.
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