EBay Again Posts Sales Gains
July 20 2016 - 5:50PM
Dow Jones News
EBay Inc. posted its second straight quarter of sales gains,
suggesting the online retailer may be turning the corner after a
rocky start as an independent company free of payments unit
PayPal.
The San Jose, Calif., online marketplace on Wednesday reported
$2.23 billion in sales, a 5.7% bump for the period over last year's
$2.11 billion. The company reported net income of $435 million, or
38 cents a share, up from $83 million, or 7 cents.
Analysts were expecting eBay to report a per-share profit of 42
cents, excluding certain items. On that basis, eBay had a profit of
43 cents a share.
The online retailer's shares jumped 6% to $28.64 in after-hours
trading, after finishing the day up 1.9%.
EBay has struggled to keep apace with other online retailers,
particularly since carving off PayPal just over a year ago. The
company has sought to bolster its image as a catchall site for rare
tchotchkes, as well as new goods. But as Amazon.com Inc. has
brought in more third-party sellers, with unique inventory, eBay
hasn't been able to maintain its cool.
EBay also is working to revise the index for its entire site to
improve its rankings in Google search, a long and painstaking
process that requires sellers to provide additional information
about their products.
Event ticker reseller StubHub continues to be a bright spot for
eBay, posting a 40% increase in sales to $225 million. StubHub
recently bought Spanish rival Ticketbis, as well as software firm
Ticket Utils and reached a deal to resell tickets for the New York
Yankees, which had been a vocal critic.
The retailer said it had 164 million active buyers on the site,
up from the first quarter's 162 million.
Write to Greg Bensinger at greg.bensinger@wsj.com
(END) Dow Jones Newswires
July 20, 2016 17:35 ET (21:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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