Ebay, Inc., which has recently doubled down on the sports and active lifestyle market, said it exceeded expectations on all key metrics while investing in sustainable growth in the second quarter, with mid-single-digit revenue growth and flattish earnings year-over-year.

“Three years ago, I set our ambition of becoming the best global marketplace to buy and sell through a tech-led re-imagination,” said Jamie Iannone, CEO of eBay. “Now, we are raising the bar for innovation and have evolved our vision to reinvent the future of e-commerce for enthusiasts, only at eBay. This work is already producing compelling results, and we are confident the sharper focus will deliver long-term returns to our shareholders.”

The company said revenue was $2.54 billion for the second quarter, up 5 percent on an as-reported basis and up 6 percent on a currency-neutral basis. Gross Merchandise Volume (GMV) was $18.2 billion, down 2 percent on an as-reported basis and down 1 percent on a currency-neutral basis.

  • First-party advertising products, primarily driven by Promoted Listings, delivered $341 million of revenue in the second quarter, up 47 percent on an as-reported basis and up 49 percent on a currency-neutral basis; and
  • The company’s total advertising offerings generated over $367 million in revenue in the second quarter, representing roughly 2.0 percent of GMV.

GAAP net income from continuing operations was $172 million, or 32 cents per diluted share, in the quarter, compared to a loss of 536 million, or 96 cents per share, in the year-ago quarter. Non-GAAP net income from continuing operations was $555 million, flat to last year’s quarter. Non-GAAP EPS was $1.03 per diluted share, up 5 percent from Q2 last year.

GAAP operating margin was 20.4 percent of sales in Q2, and Non-GAAP EPS was 26.9 percent of sales in the quarter.

In addition to focusing on the growing resale or re-commerce market driven by Gen-Z’s increased interest in the circularity of products they buy, Ebay is also investing in streetwear and footwear businesses focusing on the authenticity of the pre-owned products they sell.

Key initiatives eBay is looking at to drive its pre-owned business include:

  • The company launched Authenticity Guarantee for streetwear in the U.S. and expanded the program to kids’ sneakers in the U.S. and U.K. and trading cards in Canada.
  • During the quarter, eBay launched its Certified by Brand program, which provides shoppers access to a broader selection of luxury goods by partnering directly with brands to scale their presence in the secondary market.
  • Ebay acquired Certilogo in July, an AI-powered authentication provider for fashion. Ebay said the acquisition further solidified the brand as a trusted destination for consumers to shop pre-loved apparel confidently.
  • Coinciding with the premiere of “Air,” the movie set in 1985 about the origin of the Air Jordan 1, eBay partnered with top sneaker sellers to host The ’85 Shop in Chicago, a retail pop-up store featuring the entire collection of original Air Jordan 1s in all colorways, a never-before-released Air Jordan 1 sample and other iconic 1980s sneakers.
  • Ebay U.K. relaunched its Certified Recycled program for used parts and accessories, providing an added layer of trust for shoppers looking for tested and graded vehicle parts.
  • Ebay Ventures invested in sports resale marketplace Sideline Swap and luxury fashion rental marketplace, The Volte, furthering the company’s commitment to re-commerce.

Photo courtesy eBay