This article is from: srnnews.com
Feb 18 (Reuters) – EBay Inc forecast first-quarter revenue above Wall Street estimates on Wednesday and announced the acquisition of fashion marketplace Depop from Etsy for nearly $1.2 billion, sending its shares up 7% in extended trading.
The company has focused on specialty categories such as luxury goods and auto parts to navigate a challenging e-commerce market.
EBay expects first-quarter revenue in the range of $3 billion to $3.05 billion, compared with analysts’ average estimate of $2.80 billion, according to data compiled by LSEG.
Depop has a “strong momentum in the pre-loved fashion category” which will deepen eBay’s reach with younger, fashion-forward consumers and expand its presence in one of the most dynamic areas of resale, the company said.
EBay has worked to differentiate itself by leaning into “recommerce” and its role in the circular economy, emphasizing pre-owned, refurbished and authenticated goods.
Shares of the San Jose, California-based company gained 40% last year.
(Reporting by Juby Babu in Mexico City; Editing by Maju Samuel and Sriraj Kalluvila)
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