FashionEBay Falls After Projecting Lackluster Holiday Season Sales

EBay Falls After Projecting Lackluster Holiday Season Sales

-

spot_img



EBay Inc. dropped in extended trading after projecting holiday season sales that fell short of analysts’ estimates, suggesting the e-commerce company continues to struggle against larger rivals.

Revenue will be $2.53 billion to $2.59 billion in the period ending in December, the company said Wednesday in a statement. Profit, excluding some items, will be as much as $1.22 a share. Analysts, on average, estimated sales of $2.64 billion and earnings of $1.23 a share, according to data compiled by Bloomberg.

In an effort to stem its eroding market share, eBay has been focusing on narrow categories such as car parts, luxury goods, collectibles and refurbished appliances. The San Jose, California-based company is investing in authentication services to appeal to luxury shoppers wary of online fakes and offers guarantees on vehicle parts and refurbished goods to reassure those focused on thrift. Bill Nash, chief executive officer of used car retailer CarMax, was added to the board of directors in September.

The presidential election, a shorter number of days between Thanksgiving and Christmas, and the devastating hurricane season were among the significant factors that affected the holiday sales forecast, CEO Jamie Iannone said in an interview.

“Consumers get distracted because of what’s happening with the election,” he said. “We factored that into our guidance based on what we’ve seen historically.”

Before Wednesday’s results, eBay’s efforts this year had found favour with investors. The stock had gained 44 percent in 2024 to $62.63 at the close. The shares dropped about 8.5 percent after the results.

In the third quarter, revenue increased 3 percent to $2.58 billion, while adjusted profit was $1.19 a share. Analysts, on average, estimated sales of $2.55 billion and earnings of $1.18 a share.

Gross merchandise volume, the value of all goods sold on eBay, increased 2 percent to $18.3 billion during the quarter, beating the average estimate of $18.1 billion.

By Spencer Soper

Learn more:

Margherita Missoni’s Maccapani Brand Attracts Investment From Bizzarri Family, Collaborates With eBay

The family of former Gucci CEO Marco Bizzarri has taken a minority stake in the Italian knitwear scion’s new womenswear venture.



Source link

Latest news

‘The land is tearing itself apart’: life on a collapsing Arctic isle | Arctic

Last summer, the western Arctic was uncomfortably hot. Smoke from Canada’s wildfires hung thick in the air, and...

Has Fashion’s Convergence With Sports Gone Too Far?

In just the past few days, Jerry Lorenzo’s Fear of God Essentials label announced a partnership with the...

Alexander Wang Resort 2025 Menswear Collection

On his brand Instagram account, Alexander Wang is offering Wangovers to tourists and locals he meets in the...
spot_img

Banana taped to wall sold to crypto founder for $6.24mn at Sotheby’s auction

US stocks were mixed at the market’s close, as investors hunkered down ahead of earnings — and outlook...

Cannabis use linked to brain changes in young adults at risk of psychosis

Young adults at risk of psychosis...

Must read

‘The land is tearing itself apart’: life on a collapsing Arctic isle | Arctic

Last summer, the western Arctic was uncomfortably hot....

Has Fashion’s Convergence With Sports Gone Too Far?

In just the past few days, Jerry Lorenzo’s...
spot_img

You might also likeRELATED
Recommended to you