(Reuters) – Etsy missed Wall Street estimates for holiday-quarter revenue and gross merchandise sales, hurt by weak spending on gifts and handcrafted goods, sending shares of the online marketplace down 8% in premarket trading on Wednesday. Sticky inflation and competition from other online shopping platforms such as Amazon.com and PDD Holdings’ Temu have hurt Etsy’s […]
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Etsy misses holiday-quarter sales estimates, shares fall
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(Reuters) – Etsy missed Wall Street estimates for holiday-quarter revenue and gross merchandise sales, hurt by weak spending on gifts and handcrafted goods, sending shares of the online marketplace down 8% in premarket trading on Wednesday.
Sticky inflation and competition from other online shopping platforms such as Amazon.com and PDD Holdings’ Temu have hurt Etsy’s revenue as consumers opted for lower prices and discounts.
While consumer spending grew in the last three months of the year, according to the U.S. Commerce Department’s Bureau of Economic Analysis, demand for products such as furniture and accessories was weak as people prioritized essentials.
Etsy posted consolidated GMS — a key metric to measure sales — of $3.74 billion for the quarter ended December 31, compared with analysts’ estimates of $3.88 billion according to data compiled by LSEG.
It posted quarterly revenue of $852.2 million, compared with analysts’ expectations of $862.8 million.
The company also forecast first-quarter GMS to decrease 6.8% from a year earlier, a similar rate of decline as seen in the last three months of 2024.
However, Etsy earned $1.03 per share in its fourth quarter, beating expectations of 93 cents.
(Reporting by Aamir Sohail in Bengaluru; Editing by Krishna Chandra Eluri)