eBay has forecast stronger-than-expected first-quarter revenue while announcing the acquisition of fashion resale platform Depop from Etsy for approximately $1.2 billion. The move aims to expand eBay’s position in the fast-growing pre-owned fashion segment.
The company expects quarterly revenue between $3 billion and $3.05 billion, surpassing analyst projections of $2.80 billion. This outlook reflects continued growth driven by its focus on recommerce, which emphasizes refurbished, authenticated and second-hand products.
Depop is seen as a strategic addition, particularly due to its popularity among younger consumers who prioritize sustainability and circular consumption. The platform has gained traction in the resale fashion market by promoting the reuse of clothing and accessories.
According to CEO Jamie Iannone, the acquisition aligns with shifting consumer preferences toward environmentally conscious shopping habits. The deal is expected to close in the second quarter and could contribute up to two percentage points to eBay’s gross merchandise volume growth by 2026.
For the first quarter, eBay anticipates total merchandise sales between $21.5 billion and $21.9 billion, exceeding market expectations. The company previously reported $2.97 billion in fourth-quarter revenue, alongside a 10 percent increase in merchandise volume.