Amazon profit doubles in tough economy

Amazon.com Inc. did the improbable by doubling its profit despite the US economic downturn and high fuel prices.┬á The worldÔÇÖs largest Internet retailer reported a net profit of $158 million for the quarter that ended June 30; it earned $78 million in the same quarter last year.┬á Amazon may actually be benefiting from high gas prices, as cost-conscious shoppers may be less likely to drive to a brick-and-mortar store and prefer to shop online.┬á The companyÔÇÖs revenue jumped 41 percent to $4.06 billion, surpassing industry forecasts in what is traditionally the weakest quarter of the year.┬á The growth was largely driven by overseas sales, which grew 47 percent to $1.89 billion, as the weak dollar made products cheaper for customers outside the US. The retailer also realized a $53 million gain from the sale of some European DVD rental assets. ┬á The company saw North American sales grow 35 percent, despite dropping its prices on some goods to lure US customers.┬á Media sales (books, CDs, DVDs etc.) rose 31 percent to $2.41 billion, while electronics and other general merchandise sales leaped 58 percent to $1.53 billion.┬á Jeff Bezos, founder and chief executive of Amazon, said, ÔÇ£Customers continue to take advantage of our low prices, free shipping and Amazon Prime. Amazon Prime membership costs less than a tank of gasÔÇömore and more customers are joining the program and enjoying its benefits.ÔÇØ Membership offers free two-day shipping of items for an annual fee.