Amazon sales soar despite downturn

 

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By Stuart Turton

Posted on 24 Apr 2009 at 11:53

Amazon's sales leaped 18% to $4.9 billion in its first quarter, buoyed by the strong performance of the Kindle 2 and a range of discounted products.

According to the online retail giant, sales in the US increased by 21% during the quarter, while those overseas were up 15%. Subtracting the negative foreign exchange rates, Amazon claims sales would have been up by around 25%.

Amazon's strong performance saw profit jump 24% to $177 million. As is becoming customary for the company, it laid partial credit for the strong results at the feet of its Kindle eBook reader - despite the fact that it refuses to offer sales figures for the device.

"We're grateful and excited that Kindle sales have exceeded our most optimistic expectations," says Amazon founder Jeff Bezos in a statement.

Bezos hailed the company's tactic of pushing free delivery and the Amazon Prime discount shipping program, which he claimed was encouraging customers to buy from many different product categories.

He also praised growth in independent sellers operating through the site. Amazon gets an undisclosed cut of what is sold.

Bezos went on to predict a stellar second quarter with net sales expected to grow between 6% and 17% to between $4.3 billion and $4.75.