EBay forecasts upbeat revenue, buys Depop to boost fashion presence

By Juby Babu

Feb 18 (Reuters) - EBay Inc EBAY.O forecast first-quarter revenue above Wall Street estimates on Wednesday and announced the acquisition of fashion marketplace Depop from Etsy ETSY.N for nearly $1.2 billion, sending its shares up more than 7% in extended trading.

The company has worked to differentiate itself by leaning into "recommerce" and its role in the circular economy, emphasizing pre-owned, refurbished and authenticated goods, amid a challenging market.

EBay expects first-quarter revenue in the range of $3 billion to $3.05 billion, compared with analysts' average estimate of $2.80 billion, according to data compiled by LSEG.

Depop has a "strong momentum in the pre-loved fashion category" and will expand its presence in one of the most dynamic areas of resale, the company said.

"The younger generation is very focused on pre-loved apparel, driving sustainability, recycling things that they have in their closet, and this gives us an opportunity to really lean in with a focused experience in the acquisition of Depop," CEO Jamie Ianonne told Reuters in an interview.

The Depop deal is expected to close in eBay's second quarter and would contribute one to two percentage points to total gross merchandise volume (GMV) growth year-over-year in 2026.

Ebay sees GMV, a key metric showing the total value of goods sold on its platform, in the range of $21.5 billion to $21.9 billion for the first quarter, exceeding an estimate of $20.10 billion.

The company reported revenue of $2.97 billion for the fourth quarter ended December 31, beating an estimate of $2.88 billion.

GMV grew 10% to $21.24 billion in the quarter.