Shares of eBay Inc. (NASDAQ: EBAY) were up 4% on Friday. The stock has gained 9% in the past three months. The ecommerce leader ended fiscal year 2025 on a strong note with double-digit growth in sales and earnings for the fourth quarter. The company continues to see strong performance from its focus categories and it is broadening its footprint in the fashion recommerce space with the acquisition of Depop.
Revenue and earnings growth
eBay’s revenues increased 15% year-over-year to $2.96 billion in the fourth quarter of 2025. Revenue was up 13% on a foreign exchange (FX)-neutral basis. Earnings per share from continuing operations, on an adjusted basis, rose 13% to $1.41.
Focus category growth
In the fourth quarter, eBay saw gross merchandise volume grow 8% YoY on an FX-neutral basis to $21.2 billion. The company’s focus categories, led by collectibles, P&A, luxury, refurbished, apparel, and sneakers, continued to deliver positive growth, with total focus category GMV up over 16% in Q4.
Collectibles benefited from gains in trading cards as well as coins, action figures, and comics. Motors, Parts & Accessories, or P&A, is gaining from a trend where consumers are opting to repair rather than replace their vehicles. Fashion is another category that is seeing strong growth, led by luxury and pre-loved apparel.
In Q4, eBay saw strong growth in US GMV, which was up 19%, helped by strength in collectibles, growth in luxury and pre-loved apparel, and a rise in demand in certain electronics categories. On the other hand, international GMV fell around 1%, due to macroeconomic headwinds in the UK and Germany, and a slowdown in cross-border volume growth due to US trade policies.
Depop acquisition
eBay’s decision to acquire Depop, a leading C2C fashion marketplace, from Etsy is anticipated to help boost its fashion recommerce business. Fashion is a key growth category for eBay with over $10 billion in annual gross merchandise volume. Depop has a strong customer base with Gen Z and millennial customers, and at 2025-end, it had 7 million active buyers and 3 million active sellers on its marketplace. This acquisition will help eBay significantly expand its presence in the fashion category.
Outlook
For the first quarter of 2026, eBay expects revenue of $3.00-3.05 billion, which represents an FX-neutral growth of 13-15% YoY. GMV is expected to be $21.5-21.9 billion, representing an FX-neutral YoY growth of 10-12%. Adjusted EPS is expected to range between $1.53-1.59, representing a YoY growth of 12-16%.
The post eBay (EBAY): Focus category momentum and a boost to fashion recommerce first appeared on AlphaStreet News.
