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Amazon Reports Double-Digit Sales, Profit Gains

1/28/2010 04:27:03 PM Eastern
Seattle - Amazon.com reported double-digit net sales and net profit gains for its fourth quarter, ended Dec. 31, 2009.

Net sales increased 42 percent to $9.52 billion in the fourth quarter, compared with $6.7 billion in fourth quarter 2008. Excluding the $354 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 37 percent compared with fourth quarter 2008.

Net income increased 71 percent to $384 million in the fourth quarter, compared with net income of $225 million in fourth quarter 2008.

In a prepared statement, Jeff Bezos, founder and CEO, said, "Millions of people now own Kindles. And Kindle owners read, a lot. When we have both editions, we sell 6 Kindle books for every 10 physical books. This is year-to-date and includes only paid books - free Kindle books would make the number even higher. It's been an exciting 27 months."

Worldwide electronics and other general merchandise sales grew 60 percent to $4.61 billion. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 54 percent.

Amazon also reported that Kindle and Kindle DX are available for immediate shipment to more than 100 countries. Additionally, the Kindle for iPhone App is now available from the Apple App Store in more than 60 countries. Customers around the world can now synchronize reading between their Kindle, Kindle DX, personal computer, iPhone, iPod Touch and soon, Blackberry, Mac and iPad.

The U.S. Kindle Store now has more than 410,000 books, including 100 of 112 New York Times Bestsellers; more than 8,000 blogs; and more than 130 top U.S. and international newspapers and magazines, including The New York Times, The Wall Street Journal, The Times (U.K.), Le Monde, The Economist, The New Yorker, Newsweek and Time.

North America segment sales, representing the company's U.S. and Canadian sites, were $4.96 billion, up 36 percent from fourth quarter 2008.

For the full year, net sales increased 28 percent to $24.51 billion, or 29 percent excluding the $182 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the year, compared with $19.17 billion in 2008.

Net income increased 40 percent to $902 million in 2009, compared with net income of $645 million in 2008.
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