Dive Brief:
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EBay says it foresees a difficult holiday retail season and that it has lowered its forecast for the year as a result.
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This past May’s hack of eBay’s customer data and a loss of traffic earlier this year due to a search penalty from Google also contributed to the company’s loss in revenue, the company said.
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EBay says it expects 2014 revenue between $17.85 billion and $17.95 billion, lower than the $18 billion to $18.3 billion it had forecast previously.
Dive Insight:
An improving economy and an optimistic National Retail Federation prediction that holiday retail sales will rise 4% apparently aren't swaying eBay’s outlook much. That’s despite the company’s besting of analyst expectations in the third quarter, indicating the depth of its pessimism about its holiday-time prospects.