Ebay is anticipating strong revenue growth in the coming quarters, thanks to its strategic focus on categories such as sneakers and refurbished items.
The e-commerce giant has been experiencing a surge in sales from these product segments, even as consumer spending has moderated due to high inflation.
Chief Executive Jamie Iannone is optimistic about the company’s performance despite the uncertain macroeconomic environment.
He stated, “There remains a dynamic and uncertain macroeconomic environment across the globe with inflation and rising interest rates and pressured consumer confidence …
but our focus categories remain relatively resilient.”
To further drive sales, Ebay has been expanding its listing offerings, particularly in refurbished electronics, luxury bags, and watches.
The company has also ventured into the collectibles category following its acquisition of trading cards marketplace TCGplayer last year.
Additionally, Ebay is focused on expanding its international sales, which contributed approximately 20% to its total gross merchandise volume last year.
The company has implemented a new program that streamlines customs formalities and facilitates returns.
Ebay’s optimistic revenue forecast has uplifted investor sentiment, which had been impacted previously.
For the June-quarter, Ebay expects revenue in the range of $2.47 billion to $2.54 billion, surpassing analysts’ projection of $2.43 billion.
In the last quarter, Ebay reported a 1% growth in revenue to $2.51 billion, outperforming analysts’ estimate of $2.48 billion.
The company also exceeded earnings per share expectations, generating $1.11 compared to the estimated $1.07..
