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Sales continue to surge at Amazon

25.07.07 Philip Jones

Sales at Amazon.com's international units, including its UK website, rose by 26% in the group's second quarter. In the three months ended 30th June, sales rose from $1.3bn, against $982m a year earlier. Operating profit rose to $83m, compared with $55m. Sales of media products, including books, rose to $910m, compared with $718m.

The group said that it was helped by customers coming to its website to pre-order the latest Harry Potter book--it received orders for more than 2.2 million copies of the title--helping drive worldwide sales up by 35%. Net sales increased to $2.9bn in the second quarter, compared with $2.1bn in second quarter 2006. Excluding the $46m favourable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales grew 33% compared with second quarter 2006.

Operating income increased 149% to $116m in the second quarter, compared with $47m in second quarter 2006.

The New York Times reported that the news pushed up the company's stock in after-hours trading to a level it has not reached since February 2000, during the heyday of the dot-com boom.

Amazon said that Harry Potter and the Deathly Hallows was its largest new product release to date. However, it will not count the revenue until its next quarter, when sales are expected to reach more than $3bn, with operating income expected to be between $75m and $110m.

Retail Financial Philip Jones amazon

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