Retailers, consumers and prices
Check Out Line: Recession? Not at Amazon.com
The online retailer beat Wall Street expectations for quarterly earnings and revenue as lowered prices lured more shoppers online. It also benefited as sales of its Kindle electronic reader gained momentum.
The company increased revenue an unexpectedly strong 18 percent as cash-strapped consumers went shopping online, and Amazon’s own discount shipping program spurred purchases.
Promotions and cost-consciousness — as customers eschewed a trip to the mall in favor of browsing for free online — helped it post a 21 percent sales gain in North America.
“It tells you how well they’re executing and winning business with customers and increasing share of wallet with their consumers,” said Steve Weinstein at Pacific Crest Securities.
He noted that Amazon’s U.S. business was growing faster than the overall e-commerce market. “It’s an incredible feat.”
Chief Executive Jeff Bezos said sales of the company’s Kindle had “exceeded our most optimistic expectations.”
The Kindle, sales of which are not disclosed, has garnered out-sized attention but analysts cannot speculate to what extent the $359 device contributes to profit, if at all.
(Additional reporting by Alexandria Sage)
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