Amazon (NSDQ: AMZN) made its big splash for the week Wednesday, with its $847 million acquisition of shoe retailer Zappos.com propelling it to a 52-week high ahead of today’s earnings. But it’s coming down to earth a bit now that the actual Q209 numbers are out, with net income down 10 percent to $142 million on sales of $4.65 billion, up 14 percent. (Amazon blames bad foreign currency rates for keeping it from a 20 percent sales gain.)
|2Q 2009||2Q 2008||Analysts’ Estimates|
As for Zappos, Szkutak stressed that the acquisition is “not about synergies, this is about growing in categories that we think are very interesting.” Amazon has a track record of having multiple brands selling within the same category, and he urged analysts to think along those lines rather than Zappos replacing anything Amazon is already doing in shoes and apparel.
—More on Kindle: The Kindle catalog number also gets a highlight mention, moving to more than 320,000 from more than 300,000 titiles. That number took on some significance—beyond being a gauge of how well Amazon is doing at converting publishers—when Barnes & Noble went live with an e-book store claiming 700,000-plus titles. Some 500,000 of those are free, though, so Amazon still leads in books that can be sold. And in books it can lose money on since the company makes up the difference for selling titles at a lower price.
By Staci D. Kramer