Amazon sales surpass expectations

Sales of the latest Harry Potter novel have helped Amazon, the world's largest internet retailer, beat second quarter sales and earnings estimates, the company said today.

Amazon sold 1.4 million copies of the latest JK Rowling novel, helping reduce second quarter net losses to £30m compared with £58.7m a year ago.

Sales grew by 42% as consumers responded to greater discounts on books and CDs and the lure of free shipping.

As a result net sales hit £687m, an increase of 37% on the same period 12 months ago.

"In January, we shifted money from TV and print advertising to customers through lower prices and free shipping. We're pleased with the results," said Amazon.com's founder and chief executive officer, Jeff Bezos.

International sales across the company's UK, German, French and Japanese sites, grew 81% to £248m in the second quarter.

Though Amazon's international sales were boosted by the continuing weakness of the dollar, which increases the value of dollar sales outside the US, the company said it was raising its earnings guidance for the year.

For the full year it now expects sales to increase 25% to 30% to between £3.06bn and £3.18bn, substantially more than its previous forecast of £2.9bn and ahead of Wall Street forecasts of about £2.8bn.

"Amazon.com customers continue to respond in record numbers to our everyday low prices and free shipping," said Amazon's chief financial officer, Tom Szkutak.

Amazon's shares rose by more than 6% on the news.