Retail giant eBay on Wednesday forecast sales in the Christmas quarter below market expectations as the pandemic-fuelled online shopping boom wanes and consumers return to physical stores.
The company saw a surge in profits in 2020 when lockdowns forced people to shop on its online marketplace, but growth has since slowed as vaccinations encourage consumers to finally head out.
eBay expects fourth-quarter revenue of between $2.57 billion and $2.62 billion, well below analysts’ average forecast of $2.65 billion, according to Refinitiv IBES data.
The online retailer also recorded a 5% fall in the number of active shoppers on its online marketplace for the third quarter.
The total dollar value of sales on eBay, also known as the gross merchandise volume, of which the company receives a percentage, fell by 10%.
However, the company’s flourishing payment services and the expansion of its advertising portfolio led to an 11% increase in revenue, which exceeded expectations.
On an adjusted basis, it earned 90 cents per share, one cent above forecasts.
For the current quarter, the company forecast adjusted earnings of between 97 cents and $1.01 per share, with analysts forecasting a dollar per share.
For more information, read the original story in Reuters.