Amazon's sales dip as losses narrow

LONDON - Online retailer Amazon.com has reported a third-quarter drop in sales as losses narrowed, and has lowered fourth-quarter sales forecasts to 10%, down from between 10%-20%.

However, the company said it expects to report its first pro-forma operating profit -- excluding stock-based compensation, goodwill amortisation and other charges -- in the fourth quarter.



The company said pro-forma losses were in line with expectations at $58m (£40.6m), or 16 cents a share.



Actual third-quarter losses were higher at $170m (£119m), or 46 cents a share, down from $241m (£168.6m), or 68 cents a share, last time.



Third-quarter sales grew just $1.4m (£979,394) to $639m (£447m) year on year, following a dip in sales at its core US book, video, DVD and music division. This was partly offset by a 58% rise at its international operations and a 6% rise in sales of kitchen equipment.



The company said it lost around $25m-$35m (£17.5m-£24.5m) after the terrorist attacks on the US, but said that order rates since have been stronger than in the weeks before the attacks.



Amazon shares rose 8.9% on Nasdaq to $9.55 (£6.68).




If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .



Claire Billings, recommends

Amazon

Read more