Etsy Surpasses Revenue Estimates Despite Challenges

Published 3 hours agoETSY

Etsy Surpasses Revenue Estimates Despite Challenges

Etsy recently reported a 1% increase in first-quarter revenue, reaching $651.2 million and exceeding Wall Street expectations of $642.7 million. This growth was bolstered by steady consumer demand for gifts, handcrafted items, and apparel, particularly through its resale platform, Depop. Reuters noted that this uptick occurred even as the overall retail landscape faces external economic challenges.

Despite the positive revenue figures, Etsy saw a dip in Gross Merchandise Sales (GMS), reporting $2.79 billion for the quarter, compared to $2.99 billion the previous year. The company expects a similar or slightly lessened decline in GMS in the upcoming quarter. Etsy also disclosed a net loss of $52.1 million, attributed mainly to a $101.7 million impairment charge connected to the anticipated sale of its musical instrument marketplace, Reverb. This marks a significant shift from a net profit of $63 million in the same period last year.

In response to these mixed results, Etsy's shares rose nearly 1% in premarket trading, indicating investor confidence in its strategic direction. Despite broader industry concerns over tariffs imposed by President Trump, Etsy has managed to avoid significant impacts due to its focus on locally sourced or European products. The company, however, remains watchful of any new tariffs on EU goods, as it continues to adapt to the fluctuating economic environment.

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