Ebay Gives Disappointing Sales Outlook
EBay has seen shares fall as much as 8 per cent after giving a less-than-stellar sales and profit outlook for the current quarter.
The e-commerce giants projected revenue between US$2.35 billion and US$2.40 billion for the June quarter, well under Wall Street expectations of US$2.54 billion.
The company saw its gross merchandise volume drop 20 per cent to US$19.4 billion during the first quarter of the year. This metric is often used by investors as a measure of overall performance.
Active buyers on eBay declined 13 per cent to 142 million in the first quarter, as revenue fell 6 per cent to US$2.48 billion. Despite this, it managed to beat Wall Street predictions
High inflation and a return to bricks and mortar stores is to blame for the modest forecast for the current quarter.
CEO Stephen Priest said on a post-earnings call that the war in Ukraine impacted e-commerce traffic in key markets Germany and the UK.
“Those negative impacts will continue through 2022,” he said.