Electronics and Jewels Lift Profit at Amazon MARKETPLACE By Bloomberg

Oct 24, 10:33 AM

Current Headlines: By Heather Burke

Amazon, the biggest Internet retailer, said Tuesday that third- quarter earnings quadrupled on strong sales of electronics and jewelry.

Net profit climbed to $80 million from $19 million a year earlier. Revenue increased 41 percent to $3.26 billion.

Sales of electronics and general merchandise gained more than those of CDs and DVDs as Amazon expanded its jewelry and grocery offerings, and as buyers of the final book in the Harry Potter series purchased other products.

The retailer also increased more profitable sales by third parties overseas.

"They have a timeless and cutting-edge variety that protects them against some of the ups and downs of retail," Scott Tilghman, an analyst at Soleil Securities in Baltimore, said before the release of results. "The opportunity to roll out those categories internationally is significant."

Shares in Amazon surged $9.53, or 9.6 percent, to close at $100.82 before the results were released. The stock has more than doubled this year.

Thomas Szkutak, chief financial officer, said in March that Amazon would slow spending on technology after its profit margin fell to the lowest level since 1999.

Amazon, which began by selling books on the Web, has sought to diversify its product offerings as Barnes & Noble and other bookstores have cut prices and promoted customer loyalty programs.

The retailer has marketed international third-party sales, where customers and merchants sell goods through Amazon, while enhancing a Web services program to lure developers who want to use its technology.

Originally published by Bloomberg News.

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