January 24, 2003, 12:00 AM

Amazon’s sales grew another 26% last year to $3.93 billion

Full-year sales at Amazon.com Inc. increased 26% in 2002 to $3.93 billion from $3.12 billion for 2001, the company reports. Fourth quarter sales reached $1.429 billion, up 28% from $1.115 billion in the fourth quarter 2001.

 

Full-year sales at Amazon.com Inc. increased 26% in 2002 to $3.93 billion from $3.12 billion for 2001, the company reports. Fourth quarter sales reached $1.429 billion, up 28% from $1.115 billion in the fourth quarter 2001.

Amazon attributes the boom in sales to free shipping and lower prices. "On top of the five price cuts we`ve made over the past 18 months, we`re announcing today that we`ve decided to make Free Super Saver Shipping on orders over $25 a full-time, year-round offer," said Jeff Bezos, Amazon.com founder and CEO. "We`re at a tipping point. Customers are now shopping at Amazon.com as much for our lower prices as for our selection and convenience."

Net loss for fiscal 2002 was $149 million compared with $567 million in 2001. Fourth quarter net income was $3 million vs. $5 million in Q4 2001. Operating income for fiscal 2002 improved to $64 million, 2% of net sales, compared with a 2001 operating loss of $412 million. In Q4, operating income was $71 million, 5% of net sales, compared with $15 million in the fourth quarter 2001.

Amazon also reported:
--Worldwide unit growth was 34% for 2002.
--Third-party seller transactions (new, used and refurbished items sold on Amazon.com product detail pages by businesses and individuals) grew to 21% of worldwide units in the fourth quarter, compared with 16% a year ago.
--Inventory turns improved 22% to 19 for 2002, up from 16.
--Books, Music and DVD/Video segment sales grew 13% to $606 million in the fourth quarter and pro forma operating profit grew 14% to $73 million.
--Electronics, Tools and Kitchen segment sales grew 21% to $262 million in the fourth quarter and pro forma operating loss declined 52% to $10 million.
--International segment sales, representing U.K., German, French and Japanese sites, grew 76% to $461 million in the fourth quarter and exceeded $1 billion for the first time with sales of $1.169 billion in 2002. Pro forma operating profit was $20 million in the fourth quarter, or 4% of net sales, and approached breakeven for 2002.

Amazon said it expects first quarter net sales to be between $1.025 billion and $1.075 billion, growth of 21% to 27%. The company expects full-year sales to grow 15%.

 

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