EBay Expects $3 Billion in Sales

EBay Inc. said it expects sales to rise by 50% annually during the next five years, reaching $3 billion in 2005, as the largest Internet auction site expands in the U.S. and overseas. Gross margins, which measure the amount of profit made on each sale, will be in the mid-80% range. EBay had $224.7 million in sales last year, more than double its $86.1 million in 1998. EBay plans to double the number of international markets where it operates by expanding into five more countries by the end of next year. The company, the only major online retailer to turn a profit, expects to be in 25 countries at the end of 2005. Shares of San Jose-based EBay rose $10.88 to close at $76.56 on Nasdaq. EBay currently operates sites in Canada, Britain, Australia, Germany and Japan.