Amazon.com Inc. reported its North American sales of electronics and general merchandize, excluding media,  increased 27.8 percent to $7.83 billion in the first quarter compared with the year earlier quarter.


 

The company reported total product sales, including revenues from media and International operations, increased 18.3 percent to $15.7 billion in the first quarter, during which it launched a flurry of new shopping services design to meake it easer for households to order food and other every day household products. Total net sales, which also includes revenues from cloud-based business and other services (Amazon Web Services), increased 23 percent to $19.74 billion compared with the first quarter of 2013. Excluding the $10 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, total net sales grew 23 percent compared with first quarter 2013.

 

 

Total operating income decreased 19 percent to $146 million in the first quarter, compared with $181 million in first quarter 2013. The favorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $18 million. Net income increased to $108 million in the first quarter, or $0.23 per diluted share, compared with $82 million, or $0.18 per diluted share, in first quarter 2013.

 

 

Second quarter 2014 guidance

Amazon issued guidiance for the second quarter calling for net sales to grow between 15 percent and 26 percent compared with second quarter 2013, or to between $18.1 billion and $19.8 billion. Operating income (loss) is expected to be between $(455) million and $(55) million, compared to $79 million in second quarter 2013. This guidance includes approximately $455 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions, investments, restructurings, or legal settlements are concluded and that there are no further revisions to stock-based compensation estimates.


 

 

While Amazon CEO Jeff Bezos focused many of his comments on the introduction of Amazon's new Fire TV products and improvements to the company's online content offerings, he also outlined retailing intiatives that are exepected to impact second quarter results.  Among them are:

 

 


  • Prime Pantry: This new services, which is available only to Prime members, offers exclusive access to low-priced everyday essentials ranging from breakfast foods and popular soft drinks, to cleaning and personal care items in everyday sizes. Available nationally, Prime customers can buy as much or as little as they want and have items conveniently delivered to their home. Selection includes popular soft drinks and bottled water, a new range of paper and laundry products in popular pack sizes, single boxes of breakfast cereal, potato chips, convenience-sized personal care products and more. There’s a flat $5.99 delivery fee per Prime Pantry box.


    Dash: This Dash, an easy-to-use shopping device allows Prime Fresh customers, and their families, to effortlessly shop hundreds of thousands of items – ranging from groceries to household essentials – from anywhere in their home without having to browse the AmazonFresh website or app. Dash works directly with a customer’s AmazonFresh account – simply scan items or say the items you want and Dash finds it for you using voice search that actually works.

  • Flow: This new app for the iPhone offers customers a convenient way to search for products they need to restock in their home without typing, scanning a barcode or taking a photo – simply move your phone over packaged goods you need to restock and the Amazon app recognizes the products and saves them in your search history, where they can be added to the shopping cart or saved for later.

 









































































































































































































































































































































































































































AMAZON.COM, INC.


Supplemental Net Sales Information


(in millions)


(unaudited)

Three Months Ended
March 31,
2014 2013
Net Sales:
North America
Media $ 2,825 $ 2,513
Electronics and other general merchandise 7,829 6,128
Other (1) 1,204 750
Total North America $ 11,858 $ 9,391
International
Media $ 2,642 $ 2,545
Electronics and other general merchandise 5,188 4,086
Other (1) 53 48
Total International $ 7,883 $ 6,679
Consolidated
Media $ 5,467 $ 5,058
Electronics and other general merchandise 13,017 10,214
Other (1) 1,257 798
Total consolidated $ 19,741 $ 16,070
Year-over-year Percentage Growth:
North America
Media 12 % 14 %
Electronics and other general merchandise 28 28
Other 60 64
Total North America 26 26
International
Media 4 % 1 %
Electronics and other general merchandise 27 28
Other 13 14
Total International 18 16
Consolidated
Media 8 % 7 %
Electronics and other general merchandise 27 28
Other 58 59
Total consolidated 23 22
Year-over-year Percentage Growth:
Excluding the effect of exchange rates
International
Media 4 % 7 %
Electronics and other general merchandise 26 32
Other 11 18
Total International 18 21
Consolidated
Media 8 % 10 %
Electronics and other general merchandise 27 30
Other 58 60
Total consolidated 23 24
Consolidated Net Sales Mix:
Media 28 % 31 %
Electronics and other general merchandise 66 64
Other 6 5

Total consolidated

100 % 100 %


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(1) Includes sales from non-retail activities, such as AWS sales, which are included in the North America segment, and advertising services and our co-branded credit card agreements, which are included in both segments.