(Bloomberg) -- EBay Inc. posted quarterly results that exceeded analysts’ estimates, demonstrating that a focus on niche categories is helping it navigate intense competition from Amazon.com Inc., Walmart Inc. and Temu.
EBay’s revenue in the period ending in June increased 1% to $2.57 billion, while adjusted profit was $1.18 a share, the company said in a statement Wednesday. Analysts, on average, estimated sales of $2.53 billion and per-share earnings of $1.13.
The shares were little changed as the markets opened in New York on Thursday.
The company projected profit of $1.15 to $1.20 a share on revenue of as much as $2.56 billion in the current quarter. Analysts, on average, estimated profit of $1.13 per share on sales of $2.54 billion.
In an effort to stem its eroding market share, eBay has been focusing on narrow categories such as car parts, luxury goods, collectibles and refurbished appliances. But in 2020, Walmart surpassed eBay in US e-commerce sales, while a recent survey showed that Chinese upstart Temu is attracting more repeat shoppers.
Chief Executive Officer Jamie Iannone cited momentum in these so-called focus categories and said the strategy contributed to the company’s increase in gross merchandise volume, the value of all goods sold on eBay.
GMV increased 1% to $18.4 billion during the quarter, beating analysts’ average estimates of $18.1 billion. The San Jose, California-based company said it had 132 million active buyers in the quarter, unchanged from a year earlier.
To sharpen its focus on collectibles, eBay in May said it was buying sports card marketplace Goldin from Collectors Holdings. The same month, eBay sold its vault business, which houses memorabilia in temperature-controlled facilities, to Collectors, the parent company of card-authentication giant PSA.
(Updates with shares in third paragraph)
©2024 Bloomberg L.P.
