Etsy Inc recently disclosed its first-quarter financial results after the market closed, unveiling a revenue of $645.954 million and earnings per share of 48 cents, falling short of the consensus estimates. The decline in consolidated gross merchandise sales (GMS) of $3 billion, a 3.7% decrease year-over-year, was mainly attributed to the challenging macroeconomic environment affecting consumer discretionary spending. Within the Etsy marketplace, GMS declined by 5.3% to $2.6 billion compared to the previous year.
Despite the challenging environment, Etsy CEO Josh Silverman expressed optimism over the progress made to enhance customer experiences, expecting an improvement in buyer consideration and frequency over time. The company's focus remains on laying the groundwork to reignite growth within the Etsy marketplace. Looking ahead, Etsy anticipates second-quarter GMS to mirror its first-quarter performance, with a potential mid-single-digit decline or a slight upturn towards the low end of a single-digit loss. The company's outlook points towards a modest increase in year-over-year consolidated GMS in the latter half of the year.
Etsy’s stock price faced a 13.56% decline after hours, dropping to $60.28 following the financial report. Management is scheduled to conduct a conference call to further delve into the details of the results at 5 p.m. ET.