eBay posts lower-than-expected sales, profit forecast

PanARMENIAN.Net - The online auction and retail giant, eBay, has delivered a lower-than-expected sales and profit forecast for its fourth quarter, BBC News reports.

Blaming slowing growth in online shopping rates in the U.S., the firm said it expected sales of between $4.5bn and $4.6bn for the holiday period. The quarter is a key shopping period for the firm.

Ebay says it has seen weaker economic conditions in the United States.

"U.S. 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.

"We won't know until weeks from now, and I hope this deal sticks," eBay Chief Executive John Donahoe said when asked if the end of the conflict would lift mood of shoppers, according to Reuters.

Ebay reported net income for the third quarter of $689m, up 15% on the same period last year. Sales rose 14% to $3.89bn, helped by growth in mobile trading on the eBay auction site.

EBay said the environment in Europe and Asia was mostly stable. In July, the company said Europe was weighing on its results.

The e-commerce company's third-quarter profit was boosted by its PayPal online payments business as consumers made greater use of its PayPal service.

This summer, eBay expanded its eBay Now same-day delivery service into new markets and last month bought payments gateway Braintree for about $800 million to strengthen PayPal's presence on mobile devices.

To compete with Amazon's Prime service, PayPal is offering for a limited time free two-day shipping for items paid for with that service.