Etsy's Number of Buyers, Gross Merchandise Sales Fall in Q4

Dow Jones
02-19
 

By Emon Reiser

 

Etsy reported declines in gross merchandise sales and number of active buyers during the fourth quarter.

The Brooklyn, N.Y.-based marketplace for crafted items on Wednesday posted a fourth-quarter profit of $129.9 million, or $1.03 a share, compared with $83.3 million, or 62 cents a share, in the year-earlier quarter. Analysts polled by FactSet expected 93 cents a share.

Revenue rose 1.2% to $852.2 million, below analysts' estimates of $861.8 million.

Etsy reported a 2.6% year-over-year decline in active buyers to 89.6 million, while gross merchandise sales fell nearly 7% to $3.74 billion. Analysts expected gross merchandise sales of $3.84 billion during the quarter.

Etsy guided for a decline in first-quarter gross merchandise sales similar to the decline seen in the fourth quarter.

The company has not grown its gross merchandise sales significantly in years and has been unable to recapture its significant and rapid growth during the pandemic.

"We see several factors that we believe should position the Etsy marketplace for improved GMS performance beyond the first quarter," said Chief Financial Officer Lanny Baker.

"In addition, we're committed to maintaining a strong bottom line and generating healthy free cash flow, while also investing in the things which will further differentiate Etsy, build our opportunity, and drive our long-term growth," Baker said.

Shares fell 6% to $53.81 in premarket trading.

 

Write to Emon Reiser at emon.reiser@wsj.com

 

(END) Dow Jones Newswires

February 19, 2025 07:53 ET (12:53 GMT)

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