Seattle – The Electronics, Tools and Kitchen segment at online retailer Amazon.com enjoyed a 16 percent boost in sales during the second quarter, hitting $128.4 million, up from $111 million in the year-ago period.
The segment, which includes consumer electronics products, reduced its pro forma operating loss to $18.5 million, down 55 percent from a loss of $41.3 million in the same quarter last year.
‘Electronics, Tools and Kitchen revenue accelerated as we lowered prices and expanded electronics selection by 40 percent to over 60,000 items, including products from Sony, Toshiba, Yamaha and Microsoft,’ said Jeff Bezos, founder/CEO.
Gross margin in the Electronics segment climbed 200 basis points during the second quarter, ended June 30, up to 14 percent, from 12 percent.
For the six months, sales in Amazon’s Electronics, Tools and Kitchen segment hit $254.6 million, a 12 percent jump over the $227.5 million recorded in the same three months last year. The segment’s pro forma operating loss for the six months dropped to $39.3 million, down from a loss of $87.2 million in the same period a year ago. Gross margin for the six months rose 200 basis points, to 15 percent, compared with 13 percent year over year.
Amazon’s Books segment, which includes DVD/Video, recorded a 6 percent increase in sales in the second quarter, to $411.7 million, up from $389.7 million in the second quarter of 2001. Pro forma operating profit grew 26 percent in the second three months, to $49 million, compared with $39 million year over year.
Overall, Amazon.com reported a narrower second quarter loss, down to $93.6 million, compared with $168.4 million in the year-ago three months. Sales grew 21 percent, hitting $806 million in the second quarter, up from $668 million in the same quarter in 2001.
Looking ahead, Amazon raised its outlook for the year, expecting 2002 sales to grow more than 18 percent. Third quarter sales are anticipated in the range of $780 million to $830 million.
Improved profit margin and accelerated growth in its CE segment would help the company reach profitability on a pro forma basis in 2002, said Amazon.