Dan Brown helps Amazon surge

Published on Saturday 24 October 2009 00:49

DAN Brown's latest blockbuster book along with new shoe and handbag ranges helped the UK and international arm of online retailer Amazon to make bumper third quarter sales.

The 33 per cent rise in sales in the three months to September contrasts with figures from traditional high street retailers, many of which continue to struggle.

The addition of new ranges – such as Amazon UK's lighting store and shoe and handbag website javari.co.uk – contributed to the improved revenues performance of $2.6 billion (1.6bn).

Brian McBride, managing director of Amazon Europe, said the recession appeared to be working in the retailer's favour as cash-wary shoppers trawl the internet for bargains.

McBride, who is also a non-executive director of Celtic Football Club, said: "People are being careful with their money, so for example they are buying home gym equipment from us rather than joining a gym club.

"The economy is helping us at the moment."

The sales growth in the international division outstripped the performance of the wider Amazon business, which grew revenues by 28 per cent to $5.5bn in the quarter.

Net profits were 62 per cent higher at $199 million, although no figure was given for the overseas arm. The Kindle electronic reader was the best selling item on Amazon.com by both unit sales and in dollar terms. Amazon – which has warehouses at Gourock, in Inverclyde, and Glenrothes, in Fife – recently made the eReader available to UK customers.

Amazon also revealed that it intends to release software next month that lets people buy electronic books and read them on a computer, regardless of whether they own a Kindle device.

The service is similar to an application already offered to owners of Apple's iPhone and iPod Touch, and may provide Amazon with a way to expand its e-book revenue.

Dan Brown's latest book, The Lost Symbol, was the biggest selling item on Amazon.co.uk in the quarter, followed by new computer operating system Microsoft Windows 7, which sold more copies in the first eight hours than Windows Vista, its predecessor, did in its entire pre-order period.

McBride added that disruption by the Royal Mail strike had been limited by the firm's use of several other carriers. Additional staff have been recruited at distribution centres to speed up orders.

For the fourth quarter – which includes key Christmas sales – Amazon said it expects its revenue to be between $8.1bn and $9.1bn, compared with analysts' expectations for $8.1bn.

The company forecast operating profit of between $300m and $425m.