An employee walked past a quilt and displayed an Etsy Inc. sign at the Brooklyn Corporation headquarters.
Victor J. Blue/Bloomberg by Getty Images
Etsy miss In terms of revenue and total merchandise sales in the fourth quarter, the company was characterized by a “huge headwind”, including a pullback to consumer spending. The stock slides more than 9% in Wednesday morning trading.
This is how the company works:
- income: $1.03 per share, LSEG expected 93 cents per share
- income: $852.2 million, LSEG expected $862.8 million
Total commodity sales or the total amount of merchandise sold on the platform was US$3.74 billion, a year-on-year decrease of 6.8%. Wall Street forecasts $3.8 billion for the general manager in the fourth quarter, according to analysts surveyed by FACTSET.
The fourth quarter includes holiday shopping periods. Etsy said the GMS downturn was a result of “consumer discretionary product spending pressure”, making a difficult comparison due to shorter holiday shopping seasons and “category combinations” and a competitive retail and marketing environment.
Etsy operates an online marketplace that connects buyers and sellers to primarily artisans and handmade products. The company has been working to strengthen its image as a destination for unique gifts and products as it fights the competitive e-commerce market. Amazon Recently, Chinese online retailers Temu, Shein and Tiktok stores.
Online holiday spending rose nearly 9% in November and December to $241.1 billion, with analyst expectations of $240.8 billion, According to Adobe Analytics. Inflational shoppers open their wallets in search of deep discounts, but some discretionary categories such as furniture, jewelry and accessories Being expected See some softness compared to toys and home decor products.
Net income in the fourth quarter was $129.9 million, or $1.17 per share, compared with $83.2 million a year ago or 70 cents a share.
Etsy also made a light outlook for the quarter and said it expects the general manager to drop at a rate similar to the year-on-year performance reported in the fourth quarter.
ETSY CEO Josh Silverman said in a call with investors that the company has suffered a short-term blow to General Motors in a matter of hard work overhauling the location. Silverman said the company’s focus is less on “recent conversion driving” and supports improving the quality of merchandise and shopping experience on the website.
“While this has led to real opportunity costs for GM, it hit at least a few hundred million dollars last year, we think it’s worth it because we’re now based on the improvement base for 2025 and beyond,” Silverman told Silverman. .
In recent years, Etsy Always trying to refute Massively produced universal goods spread from resellers on their platform to restore their roots and bring shoppers back to the platform. It also launches the gift feature to provide shoppers with personalized advice as well as loyalty programs.
“So, while others focus on cheap and fast, we focus on creativity, self-expression and elevating handmade products,” Silverman said. “When others rely on mass production and in complex supply chains, we We are empowering us with a flexible and unique seller base.”
The e-commerce industry is still absorbing the impact of President Donald Trump’s recent tariff announcement targeting popular tax loopholes used by some online retailers. trump card pauseThen recoverDe Minimis exemption, which allows exporters to ship parcels worth less than $800 into the U.S. tax exemption.
The vulnerability is expected to be closed again once the Department of Commerce and Customs officials set up the appropriate systems to handle and collect tariffs on millions of de Minimis suites. A large portion of these packages come from China.
Silverman said he expects Etsy to benefit from tariffs and minimum restrictions, and unless the Trump administration targets European countries, in this case, “it could cause more to our buyers.” Big friction.”
“Etsy is much less dependent on products from China, far less,” Silverman said. “So, I think in a way we’re seeing a very focused tariff on China…I think at least in the short term,” she said. Inside, Etsy is the net beneficiary.”
