Amazon’s Q2 Sales Boost Tempered By Toys R Us Settlement23 Jul, 2009 By: Chris Tribbey
Amazon.com saw sales up 14%, to $4.65 billion, for the second quarter of 2009 (ended June 30), compared to the same quarter in 2008. However, the company’s net income was down 10%, to $142 million, due to a $51 million settlement payment with Toysrus.com.
Toys “R” Us sued Amazon in 2004 after Amazon allegedly violated an agreement to let Toys “R” Us have exclusive rights to sell some products on Amazon.com.
Worldwide media sales grew 1%, to $2.44 billion, but were generally flat in North America. During a conference call with investors July 23, Amazon CFO Tom Szkutak said video game software and hardware sales were particularly slow during the quarter, but Amazon made up the difference with increased book sales.
“It’s an industry slow-down in video games and consoles,” he said. Data from The NPD Group have year-to-date game sales down 12%, as of June 30.
For the quarter, Amazon sales of electronics and other general merchandise were up 35%, to $2.07 billion.
For the third quarter, Amazon is forecasting sales of between $4.75 billion and $5.25 billion.