eBay gains after projecting strong sales on resilient consumers

[SEATTLE] eBay shares jumped about 10 per cent after the company projected sales that topped analysts’ estimates, suggesting optimism for continued consumer resilience at a time of shifting US tariff proposals.

Revenue will be US$2.69 billion to US$2.74 billion in the period ending in September, the company said on Wednesday (Jul 30). Profit, excluding some items, will be US$1.29 to US$1.34 a share. Analysts, on average, estimated sales of US$2.65 billion and per-share earnings of US$1.31, according to data compiled by Bloomberg.

Investors have been seeking clues about how consumers are reacting to US President Donald Trump’s trade war, which is expected to fuel inflation. eBay has seen the sale of used and refurbished goods grow faster than other categories with shoppers eager to save money.

Purchasing power from US consumers grew through various product categories, helping offset softer demand in European markets, including the UK and Germany, chief executive officer Jamie Iannone said. Chinese sellers affected by the US closing the de minimis tariff loophole, which exempts low-value shipments from import duties, successfully pivoted to other markets in Europe, he said.

“We are not immune to tariffs, but our platform is more resilient,” he added.

The shares reached a high of US$85.78 in extended trading after closing at US$77.56 in New York. The stock has increased 25 per cent this year, compared with a 8.2 per cent gain in the S&P 500.

Second-quarter profit, excluding some items, was US$1.37 a share. Revenue increased 6 per cent to US$2.73 billion. Analysts, on average, estimated US$1.30 per share on sales of US$2.64 billion.

Gross merchandise volume, the value of all goods sold on eBay, rose 6 per cent to US$19.5 billion during the second quarter, topping the average estimate of US$18.9 billion. The company said that it had 134 million active buyers as at Jun 30, in line with estimates. BLOOMBERG