Etsy beats quarterly revenue estimates on strong demand
Etsy logo is seen in this illustration taken, February 11, 2025. REUTERS/Dado Ruvic/Illustration
-Etsy beat Wall Street expectations for second-quarter revenue on Wednesday, helped by strong demand for handcrafted goods and personalized gifts sold at the online marketplace, sending the company's shares up about 3 per cent in premarket trading.
Concerns about inflation, triggered by U.S. President Donald Trump's tariff policies, have pressured consumer spending, but Etsy was able to draw in more shoppers as it offers products at a cheaper price, due to the low listing fees it charges sellers.
Etsy also remains largely insulated from direct tariff pressures as 90 per cent of the sellers in the company's marketplace source supplies domestically.
The company posted revenue of $672.7 million for the quarter ended June 30, compared with analysts' average expectation of $647.2 million, according to data compiled by LSEG.
However, Etsy missed quarterly profit estimates due to a non-cash foreign exchange-related loss. It reported 25 cents per share profit, compared with analysts' estimate of 48 cents.
Its consolidated gross merchandise sales (GMS) — a key metric to measure sales — came in at $2.8 billion, down 4.8 per cent from a year earlier.
In the previous quarter, GMS was down 6.5 per cent.
