Online retail giant eBay announced Wednesday it will acquire fashion resale platform Depop from Etsy in a deal worth approximately $1.2 billion, while also projecting first-quarter revenues that exceed Wall Street expectations. The news drove eBay’s stock price up 7% during after-hours trading.
The San Jose, California-based company has been concentrating on niche markets including luxury items and automotive components as it works to compete in the challenging online retail landscape.
For the upcoming quarter, eBay projects revenues between $3 billion and $3.05 billion, surpassing the average analyst prediction of $2.80 billion according to LSEG data.
According to eBay, Depop demonstrates “strong momentum in the pre-loved fashion category” and will help the company connect with younger consumers interested in fashion while expanding its footprint in the thriving resale market.
The company has been working to set itself apart by embracing “recommerce” and promoting its contribution to the circular economy, highlighting previously owned, refurbished and verified merchandise.
eBay’s stock experienced significant growth last year, climbing 40% over the 12-month period.
