Amazon N.A. CE Sales Grow 22%

By Jeff Malester On Feb 9 2004 - 8:00am

Online holiday purchases charged full-speed ahead in the fourth quarter, with Amazon.com in the forefront of growing success for at-home shopping retailers.

Sales in Amazon's consumer electronics segment in North America jumped 22 percent in the three months, hitting $352.5 million, up from $289.8 million in the year-ago period.

Fourth quarter sales in the North American media segment, which includes DVD/video and video games and game consoles, climbed 16 percent, reaching $750.9 million, compared with $648.6 million year-on-year.

Overall sales in North America grew 18 percent in the fourth quarter, ended Dec. 31, to $1.1 billion, from $966.7 million in the same period in 2002.

Gross profit in North America swung upward 19 percent in the holiday three months, hitting $289 million, from $243 million in the fourth quarter a year earlier. Operating income for the three months grew 39 percent, to $114 million, compared with $82 million in the same three months in 2002. Fourth quarter profit margin remained at 25 percent year-over-year.

The combination of free-shipping and healthy discounting helped the Internet retailer report improved consolidated fourth quarter and yearly sales, with Amazon taking down its first annual profit.

Amazon enjoyed a 36 percent increase in consolidated fourth quarter sales, rising to $1.9 billion, from $1.4 billion in the same three months a year ago.

Consolidated operating income about doubled for the period, hitting $137.6 million in the fourth quarter, compared with $70.5 million in the same quarter last year.

Net income reached $73.2 million, a big jump over the $2.7 million recorded year-on-year. Pro forma net income grew 66 percent in the fourth quarter, to $125 million, up from $75.4 million in the same three months a year ago.

"Our commitment to year-round free shipping and lower prices continues to be a winner for our customers and Amazon.com," said Jeff Bezos, founder/CEO.

For the 12 months, consolidated sales increased 34 percent, to $5.3 billion, up from $3.9 billion in 2002. Sales benefited by $232 million from changes in foreign exchange.

For the year, Amazon moved into the black — its first annual profit — with net income of $35.3 million, compared with a net loss of $149.1 million in 2002.