Amazon profits down 37 per cent despite sales upturn

Suzie Neuwirth

ONLINE retailer Amazon saw its profit decline 37 per cent in the first quarter, despite a 22 per cent increase in sales.

Total profits decreased to $82m, compared with $130m in the first quarter of 2012.

The “unfavourable impact” of changes in foreign exchange rates throughout the quarter negatively affected operating income by $12m, dropping to $181m, the US-founded company said.

Amazon forecasts net sales to grow between 13 per cent and 26 per cent in the second quarter.

No reasons were given for the decline in income, but analysts have suggested that the company’s growth is slowing due to a struggle to tap into the Chinese market and weak European economies.