Amazon Plans More Investment as Sales, Losses Mount
Jim Milliot -- Publishers Weekly, 5/10/1999
Sales for the first quarter ended March 31, 1999, jumped 236% to $293.6 million at Amazon.com, although the online retailer reported a loss of $61.7 million in the quarter, compared to a net loss of $10.4 million in last year's first quarter. The loss in the most recent period includes a $25.3 million charge related to a number of acquisitions made by Amazon; excluding the charges, the loss was $36.4 million.Company CEO Jeff Bezos said that during the rest of 1999, Amazon plans to "invest more heavily than we have in the past" and, as a result, Amazon's losses are expected to increase. Among the areas targeted for investment is Amazon's distribution infrastructure. The company has already announced plans to open a new facility in Coffeyville, Kans., and in Bad Hersfeld, Germany; additional centers are also likely.
During the quarter, Amazon added 2.2 million customers, bringing the total number of accounts to more than 8.4 million. The company's Associates Program now has more than 260,000 members, and the Amazon.com Delivers service, which sends periodic e-mail updates about new book, music and video titles, has more than one million participants.
A number of staff changes are also in the works. Amazon is looking for someone to fill the newly created position of chief operating officer, and a search is also underway for a new chief financial officer to succeed Joy Covey, who has been named chief strategy officer.
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