Amazon heads for narrowed losses

 

Amazon is expected to reveal narrowing losses in its third-quarter results on Tuesday.

Amazon has restructured its business over the year to narrow its losses.

The company revealed a first-quarter net loss of £160 million, a 24 per cent decrease from the year-ago period.

That figure dropped to £117 million in the second quarter, a 47% improvement from the year before.

With retail sales slowing in the wake of the September 11th tragedy, attention will turn to Amazon's forecasts for the crucial Christmas holiday season, which accounts for the bulk of its revenues.

Goldman Sachs internet analyst, Mr Anthony Noto, recently lowered his growth projections for the e-commerce market to 25 per cent from 40 per cent due to an expected slowdown in demand in the second half of the year.

He cut his third quarter sales forecasts for Amazon to £437 million from £454 million as a result.

"Current economic weakness has been exacerbated by the events of September 11th ... We recently lowered our estimates for several internet companies to reflect our diminished outlook for consumer spending," he said in a note.

"With even greater doubt surrounding the state of the consumer visibility on the next few quarters remains low."

PA