EBay announces a lower-than-expected sales and profit forecast for final quarter
EBay has announced a lower-than-expected sales and profit forecast for its final quarter.
The online auction giant said slowing growth in online shopping rates in the US mean it now expects sales of between USD 4.5 billion and USD 4.6 billion for the holiday period.
Beginning on 30 September, the final quarter is a key period for the firm, covering the annual six week of peak trading for retailers in the US, from Thanksgiving to Hanukkah and Christmas.
EBay cited weaker economic conditions in the US for the forecast, which saw shares in the company fall as much as 5 per cent on the news.
"US e-commerce softened considerably and we have a cautious outlook for the holiday season," Chief Financial Officer Bob Swan told investors on a conference call.
Despite the staunch reaction from the stock market, eBay’s third quarter recorded sales growth of 14 per cent to USD 3.89 billion, while net income rose to USD 689 million, up 15 per cent on the previous year.