eBay forecasts upbeat revenue, buys Depop to boost fashion presence

EBAY forecast first-quarter revenue above Wall Street estimates on Wednesday and announced the acquisition of fashion marketplace Depop from Etsy for nearly US$1.2 billion, sending its shares up 7 per cent in extended trading.

The company has focused on specialty categories such as luxury goods and auto parts to navigate a challenging e-commerce market.

eBay expects first-quarter revenue in the range of US$3 billion to US$3.05 billion, compared with analysts’ average estimate of US$2.80 billion, according to data compiled by LSEG.

Depop has a “strong momentum in the pre-loved fashion category” which will deepen eBay’s reach with younger, fashion-forward consumers and expand its presence in one of the most dynamic areas of resale, the company said.

eBay has worked to differentiate itself by leaning into “recommerce” and its role in the circular economy, emphasising pre-owned, refurbished and authenticated goods.

Shares of the San Jose, California-based company gained 40 per cent last year. REUTERS