Amazon Reports Sales of $21bn in 4th Quarter
Amazon, the largest e-commerce site in the western world, disappointed investors today, despite reporting sales figures of over $21 billion for the 4th quarter.
The figures came in lower than analysts expectations. Net revenue dropped 45% to $97 million, compared to $177 million for the same period last year. This was despite sales increasing 22% to $21.27 billion. Analysts were expecting better profit and revenue figures at the company during the holiday season.
“We’re now seeing the transition we’ve been expecting,” said Jeff Bezos, founder and CEO of Amazon.com. “After five years, eBooks is a multi-billion-dollar category for us and growing fast – up approximately 70% last year. In contrast, our physical book sales experienced the lowest December growth rate in our 17 years as a bookseller, up just 5%. We’re excited and very grateful to our customers for their response to Kindle and our ever-expanding ecosystem and selection.”
Over the year, sales increased 27% to $61.09 billion. Income for the year however continued to disappoint, with figures down 22% on last year at $676 million.
For the holidays, Amazon said that this quarter brought its biggest holiday season ever with over 26.5 million items ordered worldwide on its peak day. Amazon’s tablet was the most popular item for customers, the company said in December. The Kindle Fire HD was the No. 1 best-selling, most gifted and most wished for product. In addition, Cyber Monday 2012 was the biggest day ever for Kindle says worldwide, Amazon added, and during the holidays, apps and game sales were up 250% year-over-year.
For the first quarter of 2013, net sales are expected to be between $15 billion and $16.6 billion, or to grow between 14% and 26% compared with the first quarter 2012. Operating income (loss) is expected to be between $285 million and $65 million, compared to $192 million in the prior year period.