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EBay Beats Estimates on Sales and Earnings Forecast; Shares Rise

·2-min read

(Bloomberg) -- EBay Inc. reported second-quarter revenue that beat expectations and an upbeat profit outlook, evidence that a new focus on luxury items and collectibles is helping offset slowing sales and customer traffic.

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The shares rose about 5% in extended trading.

Sales will be $2.29 billion to $2.37 billion in the period ending in September, the San Jose, California-based company said Wednesday in a statement. Analysts, on average, projected $2.3 billion, according to data compiled by Bloomberg. Earnings, excluding some items, will be 89 cents to 95 cents a share, in line with the average estimates of 91 cents.

Chief Executive Officer Jamie Iannone has turned to higher-priced products like watches and brand-name sneakers to try to boost spending on the marketplace and lure more shoppers. In June, the company unveiled the 31,000-square-foot EBay Vault, a temperature-controlled facility where collectors can store valuables, monitor their market value and sell them to other buyers. The move pits EBay against such sites as The RealReal Inc., a members-only consignment shop for luxury goods.

EBay sales decreased 9% to $2.42 billion in the period ended June 30. Analysts, on average, estimated $2.37 billion. Earnings, excluding some items, were 99 cents per share, beating estimates of 90 cents.

Last week, Amazon.com Inc. reported second-quarter revenue that topped estimates, although sales from its online stores fell 4% from a year earlier.

EBay shares rose to a high of $55.44 in extended trading after closing at $50.48 in New York. The stock has fallen about 27% so far this year, in line with a broader market drop.

EBay ended the quarter with 138 million active buyers, down 12% from a year earlier. Gross merchandise volume, which is the value of all goods sold on the site, fell 18% to $18.55 billion.

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