EBay Inc. issued a bleak income outlook for the busy vacation quarter, suggesting the corporate continues to wrestle because it loses consumers to bigger rivals comparable to Amazon and Walmart.

Earnings per share will likely be $1 to $1.05 on income of $2.47 billion to $2.53 billion within the interval ending in December, the corporate stated in an announcement Tuesday. Analysts, on common, estimated revenue of $1.05 per share on gross sales of $2.6 billion.

EBay fell about 7 % because the markets opened Wednesday in New York, the largest drop since late July.

As soon as an business pioneer, the San Jose, California-based firm retains shedding US market share whilst general on-line spending continues to develop.

EBay Chief Govt Officer Jamie Iannone is attempting to promote watches and different luxurious objects in addition to refurbished objects to enchantment to cost-conscious consumers. In February, the corporate stated it was chopping about 4 % of its workforce and spending extra on know-how to enhance on-line options. Earlier this month, eBay opened a collectible sneaker retailer on Manhattan’s Canal Road that authenticates coveted manufacturers in an effort to lure streetwear fanatics anxious about shopping for fakes on-line.

Third-quarter revenue was $1.03 per share on gross sales of $2.5 billion, principally according to analyst estimates.

Gross merchandise quantity, the worth of all items bought on eBay, elevated 2 % to $18 billion within the quarter, topping analysts’ common estimates of $17.8 billion. The corporate stated it had 132 million energetic consumers within the quarter, down 3 % from a 12 months earlier.

Promoting income of $366 million narrowly missed analysts’ estimates of $368 million. EBay has been creating extra promoting and funds merchandise for its retailers to offset gradual development in general client spending on the platform.

This text was written by Spencer Soper from Bloomberg and was legally licensed via the DiveMarketplace by Business Dive. Please direct all licensing inquiries to authorized@industrydive.com.

Study extra:

EBay Launches Consignment Providing for Luxurious Style Sellers

EBay, which powers peer-to-peer transactions of all the things from toys and TVs to industrial tools and purses, is launching a brand new style consignment service that may join customers with knowledgeable sellers to record and promote pre-owned items on their behalf.

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