EBay deepens e-commerce gloom with disappointing forecast

The eBay app is seen on a smartphone on this illustration taken, July 13, 2021. REUTERS/Dado Ruvic/Illustration

Register now for FREE limitless entry to Reuters.com

  • Q2, annual income forecasts come beneath market estimates
  • Ukraine warfare hits visitors, influence to proceed by way of 2022
  • Shares decline 6% in prolonged buying and selling

Could 4 (Reuters) – EBay Inc (EBAY.O) on Wednesday turned the most recent e-commerce retailer to offer a dark income forecast as progress slows within the sector after two years of speedy enlargement in the course of the pandemic, sending its shares down 6% in prolonged buying and selling.

The corporate projected second-quarter income between $2.35 billion and $2.40 billion, in contrast with the common analyst expectation of $2.54 billion, based on Refinitiv IBES information. Its full-year forecast was additionally beneath market estimates.

The dour view displays the anticipated hit from a return of pre-pandemic procuring habits and stubbornly excessive inflation, which is more likely to curtail shopper spending. It additionally mirrors weak spot seen at bigger rival Amazon.com Inc (AMZN.O) and arts-and-crafts market Etsy Inc (ETSY.O). learn extra

Register now for FREE limitless entry to Reuters.com

Within the first three months of the 12 months, eBay’s gross merchandise quantity – a broadly watched determine for the e-commerce business’s efficiency – slumped 20% to $19.4 billion.

Chief Monetary Officer Stephen Priest mentioned on a post-earnings name that the enterprise additionally took successful from the battle in Ukraine, which has weighed on e-commerce visitors in its key markets of Germany and the UK.

“These destructive impacts will proceed by way of 2022,” he mentioned.

Energetic consumers on eBay declined 13% to 142 million within the quarter. Income fell 6% to $2.48 billion, however got here in barely above expectations of $2.46 billion.

Whereas the corporate’s first-quarter adjusted revenue was higher than estimates, its forecast for earnings within the present interval of 87 cents per share to 91 cents per share was beneath the common analyst view of $1.01 per share.

The e-commerce sector has grappled with a bounce in prices in latest months because of a decent labor market and the continuing provide chain disaster.

Register now for FREE limitless entry to Reuters.com

Reporting by Tiyashi Datta in Bengaluru; Modifying by Aditya Soni

Our Requirements: The Thomson Reuters Belief Rules.

Source link