Amazon.com Q3 net sales, marketing expenses up
Amazon.com reported a third quarter net sales increase of 44% to $10.88 billion compared with the third quarter of 2010. Third quarter marketing expenses increased 53.5% to $370 million compared with Q3 2010.
The online merchant's operating income decreased 70.5% to $79 million in the third quarter, compared with the third quarter of 2010. Net income also decreased 73% to $63 million in the third quarter compared with Q3 2010.
The company generated $5.9 billion in North America sales, an increase of 44% compared with the third quarter of 2010. Its international segment also saw a year-over-year increase of 44% to $4.94 billion compared with the same period last year.
Worldwide Media sales grew 24% to $4.15 billion during Q3 compared with the same quarter in 2010.
During the third quarter, Amazon said it will launch a revamped e-commerce site this fall with enhanced product search and tablet navigation. Amazon announced the Kindle Fire tablet and three light-weight versions of the Kindle e-reader. It was listed atop the “Favorite 50 Online Retailers” survey by the National Retail Federation's Stores magazine.
“We feel very good about the growth we're experiencing,” said Thomas Szkutak, SVP and CFO of Amazon.com, during an Oct. 25 earnings call. “We feel very good about where we are right now and the opportunities that we have in front of us.”