Etsy shares are losing ground in late trading Wednesday after quarterly financial results from the crafts marketplace demonstrated the company’s struggle to return to growth. The profit fell short of Wall Street’s expectations.
Financial Results Overview
- Revenue: $842.3 million, up 4.3% from a year earlier.
- Profit: 62 cents a share, down from 87 cents in the year-ago quarter.
- Gross Merchandise Sales: $4 billion, a slight decline.
The company cited a dynamic macroeconomic environment impacting consumer discretionary product spending and a highly competitive retail environment as some of the factors affecting results.
Future Outlook
For the first quarter, Etsy anticipates gross merchandise sales to be down in the low single-digit range from a year ago. The company expects revenue growth to outpace the growth in gross merchandise sales.
Etsy aims for the first quarter to be the low point in terms of year-over-year growth and projects improvement as they move through the rest of the quarter due to planned product and marketing investments.
Market Reaction
Etsy’s shares are down 4.5% in late trading, currently priced at $73.
Overall, while facing challenges, Etsy remains optimistic about its strategic decisions to improve future performance.
