Amazon.com announced financial results for its third quarter ended September 30, 2003. Net sales were $1.13 billion in the third quarter, compared with $851 million in third quarter 2002, an increase of 33%. Net sales benefited by $29 million from changes in foreign exchange rates compared with third quarter 2002.
Operating income was $52 million in the third quarter, or 5% of net sales, compared with an operating loss of $10 million in third quarter 2002. Consolidated segment operating income improved $46 million to $74 million, or 6% of net sales, compared with $27 million, or 3% of net sales, in third quarter 2002.
Net income was $16 million in the third quarter, or $0.04 per diluted share, compared with a net loss of $35 million, or $0.09 per share, in third quarter 2002. Pro forma net income in the third quarter grew to $48 million, or $0.11 per diluted share, compared with $0 million, or $0.00 per diluted share, in third quarter 2002.
"Thanks to free shipping and low prices, we expect more customers to turn to us for their holiday gifting needs this year-producing our biggest holiday shopping season ever," said Jeff Bezos, Amazon.com founder and CEO.
The Company currently offers Free Super Saver Shipping on orders over $25 at www.amazon.com and free shipping options at its U.K., German, French, Japanese and Canadian sites. Amazon.com is currently offering promotional discounts in apparel and sporting goods.
Quarterly Highlights
Worldwide unit growth was 36% compared with third quarter 2002.
Third-party seller units (new, used and refurbished items sold on the Company's Websites by businesses and individuals) grew to 22% of worldwide units in the third quarter, compared with 17% of units a year ago.
North America segment sales, representing the Company's U.S. and Canadian sites, grew 21% to $709 million in the third quarter and segment operating income grew 137% to $63 million, or 9% of net sales compared with third quarter 2002.
International segment sales, representing the Company's U.K., German, French and Japanese sites, grew 61% to $425 million in the third quarter and benefited by $28 million from changes in foreign exchange rates compared with third quarter 2002. International segment operating income was $11 million, or 3% of net sales.
Inventory turns for the trailing twelve months were 19, consistent with a year ago.
The Company expanded selection by launching a sporting goods store in the U.S. and an electronics store in Japan.
