Amazon sticks to profit forecasts and seeks alliances

Online retailer Amazon.com is standing by earlier forecasts that the company would reach profitability by the end of this year, and it confirmed it was actively seeking partnerships to develop co-branded websites.

LONDON (Brand Republic) - Online retailer Amazon.com is standing by earlier forecasts that the company would reach profitability by the end of this year, and it confirmed it was actively seeking partnerships to develop co-branded websites.

Chief executive Jeff Bezos told CNBC’s financial news channel that while there are no guarantees, the company is working very hard to reach operating profit, excluding unusual costs, by the end of 2001.

Bezos was speaking soon after the news that a group of shareholders had filed a lawsuit against the company, claiming it had given misleading and false information about its finances. With speculation growing over the company’s financial situation, some reports suggested that it was about to file for bankruptcy.

An Amazon spokeswoman said that the company was talking to a number of un-named potential partners over a deal similar to the one made with Toys R Us to run co-branded sites. Recent unconfirmed reports said that the company was in talks with electronics retailer Best Buy.

Other press reports have linked Amazon to a major online partnership with Wal-Mart, but this deal has so far failed to materialise.

www.amazon.com

www.bestbuy.com



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