Amazon sales up but share price falls over profit forecast

by Staff, Brand Republic 24-Apr-08, 09:05

NEW YORK - Amazon.com has reported a rise in sales of 37% to $4.12bn (£2.1bn) for the first quarter of the year, but its share price has fallen in after-hours trading after it lowered operating income forecast for the year.

The rise in sales has been helped by the low US dollar, Amazon said in its results, but even stripping that out, sales were up by 31% compared with the same period last year. Net profit rose by 30% to $143m for the period.

Amazon is predicting a rise in sales for 2008 of between 29% and 35%. However, the market was disappointed when Amazon said that its operating profit would remain largely unchanged. This was because of the cost of acquiring the online digital audio book store Audible.com.

Shares were down by 4% in after-hours trading, having closed up by $1.40 at $81.00 after the results were published.

Jeff Bezos, founder and chief executive of Amazon, said: "Our sales growth this quarter was driven by low prices and millions of in-stock items available for immediate shipment. We're grateful to our customers."