Amazon.com had first quarter net sales of $700.3 million, up 22% from $573.9 million in first-quarter 2000. The Seattle-based online retailer cut its net loss from $308.4 million to $234.1 million. The quarter ended March 31.
The current net loss figure includes a one-time $114 million charge stemming from restructuring, layoff expenses and consolidation of its fulfillment and customer service centers. But Amazon was able to shrink its fulfillment costs from $99.5 million in first-quarter 2000 to $98.2 million in first quarter 2001, and marketing costs from $40.6 million a year ago to $36.6 million during the quarter just ended.
While these may seem like small reductions, as percentages of its net sales the fulfillment expenditures fell from 17.3% to 14%, and the marketing costs dropped from 7.1% to 5.2%.
"We are on track to reach our objective of pro forma operating profitability in the coming December quarter," said Warren Jenson, Amazon.com’s chief financial officer, in a statement.
During the quarter, Amazon took orders from 3 million new customers, including 1 million new international customers. At the end of the quarter the company had 32 million cumulative customer accounts, including 3 million international customers.
Looking forward, Amazon said that its full-year operating losses would be between 3% and 6% of net sales for the year, and that the company would show an operating profit in the fourth quarter.
