Amazon.com has reported a net loss of $23 million for the first quarter, beating Wall Street's expectations.
Company executives forecast sales for the rest of the year to be better than expected.
Amazon chief financial officer Mr Warren Jenson said a combination of price cuts and free shipping had attracted more business. He added the company had been able to fill orders more efficiently.
The loss for the quarter, ending March 31st, compares to a net loss a year earlier of $234 million, which included restructuring-related and other charges of $114 million and goodwill amortisation of $49 million.
Net sales were $847 million, up 21 per cent from $700 million in first-quarter 2001.
Shares in Amazon closed down 25 cents yesterday at $14.06 a share on the Nasdaq. In after-hours trading, shares were up 84 cents or nearly 6 per cent to $14.90.
Mr Warren Jenson added: "This was fundamentally a great quarter for us where we exceeded expectations across the board."
Amazon said second-quarter net sales should be between $765 million and $815 million, up between 15 per cent and 22 per cent from last year.
Yesterday, Amazon announced its third price cut on books in a year, giving customers a 30 per cent savings on books over $15. Mr Jenson said the price cuts, along with free shipping on orders over $99, helped boost sales.
Online retailer Amazon.com said today its European customer base grew by 45 per cent in the past year and Germany and Britain remain in the black, vital elements to ensure it meets its 2002 group profit forecast.
PA