Amazon’s Q3 net sales rise 29% year-to-year, as net income is up 200%+
Net sales at Amazon reached $1.46 billion in the third quarter ended Sept. 30, up 29% from $1.13 billion a year ago, as net income hit $54 million, up from $16 million, the retailer reports. Free-shipping offers led to an 8% decline in Q3 North American operating income to $57 million from $62 million.
Also in the third quarter, Amazon says its North American consumer electronics and general merchandise annual sales topped $1 billion for the first time, as global sales in this segment surged 55% year-to-year to $1.47 billion, accounting for 44% of worldwide net sales.
Amazon CEO and founder Jeff Bezos attributes much of the company’s success to its continued policy of offering free shipping on many U.S. orders over $25. "Our decision to put dollars into lower prices and free shipping instead of TV advertising continues to be embraced by customers," he says. "Customer adoption of free shipping hit another record high this quarter."
Amazon projects full-year net sales to be between $6.675 billion and $6.925 billion, for year-over-year growth of 27-32%. It expects full-year operating income to be between $415 million and $475 million.
It projects 2005 net sales to range from $7.4 billion to $8.15 billion, and 2005 operating income to be between $400 million and $525 million.
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