From CNBC: 2025-02-19 10:38:56

Etsy missed revenue and gross merchandise sales for Q4 due to consumer spending pullback, stock dropped over 9%. Earnings were $1.03 per share, below expected 93 cents. GMS of $3.74 billion declined 6.8% YoY. Holiday shopping season slump attributed to consumer pressure, tough comparisons, and competitive environment.

Online holiday spending in Nov-Dec rose 9% to $241.1 billion, surpassing expectations. Etsy’s net income for Q4 was $129.9 million, or $1.17 per share, up from $83.2 million. The company expects GMS to fall similarly to Q4’s YoY performance in the current quarter.

CEO Josh Silverman noted a short-term GMS hit as Etsy focuses on improving site quality. The platform is moving away from conversion-driving strategies to enhance product quality and shopping experience. Etsy aims to counter mass-produced goods and provide personalized recommendations through a gifting feature and loyalty program.

Etsy is less affected by Trump’s tariff announcements targeting online retailers. The potential closure of the de minimis exemption could impact Chinese packages shipped duty-free to the US. Silverman believes Etsy is well-positioned to benefit from tariffs unless European countries are targeted, causing friction for buyers.



Read more at CNBC:: Etsy stock tumbles on revenue miss, company reports drop in goods sold