Collectibles, Pokemon boost Ebay sales
E-commerce firm Ebay forecast third-quarter revenue above Wall Street expectations and beat revenue estimates on Wednesday, helped by robust demand for collectibles and renewed interest in Pokemon cards, sending its shares up over 10 per cent in extended trading.
Ebay is likely to compete well in an environment of higher product prices due to tariffs and a macroeconomic downturn, analysts have said.
The company is expanding its focus categories to include US pre-owned apparel, which could help accelerate volume in one of the larger e-commerce verticals.
Ebay’s annual and quarterly forecast contemplates a range of scenarios regarding tariff policies, including the “de minimis” exception, CFO Peggy Alford said on a post-earnings call.
President Donald Trump on Wednesday signed an executive order suspending a de minimis exemption that allowed packages valued at or under US$800 to be shipped to the US without facing tariffs.
Ebay expects revenue of $2.69 billion to $2.74 billion for the third quarter, compared to analysts’ estimates of $2.66 billion, according to data compiled by LSEG.
It has also leveraged AI, including its magical listing tool and a shopping agent introduced in May, which delivers real-time, hyper-personalised product picks and guidance.
“The macro environment in the US in the second quarter was more favourable than expected. Despite tariff announcements and the elimination of the de minimis for imported goods, consumer demand held up,” CEO Jamie Iannone said on the call.
Ebay did not see a “meaningful improvement in the European macro environment” in the quarter, Iannone said, adding that the company’s investments across initiatives helped offset some of the trends.
For the quarter ended June 30, Ebay posted revenue of $2.73 billion, beating estimates of $2.64 billion.
Gross merchandise volume, a key metric that denotes the total value of goods and services sold on the marketplace, rose 6 per cent to $19.5 billion.
Quarterly adjusted per-share earnings of $1.37 came in above the consensus estimate of $1.30.
- Reporting by Juby Babu in Mexico City; Editing by Alan Barona, of Reuters.
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