News

Etsy Tumbles After It Projects a Sharp Growth Slowdown

Text size

Etsy projects a return to Earth in the second quarter.

Wachiwit/Dreamstime

And that’s the end of the great

Etsy

pandemic boom.

An online handicrafts marketplace, Etsy (ticker: ETSY) saw a huge lift during the Covid-19 pandemic from the accelerated adoption of e-commerce generally, with a specific boost from huge sales of face masks. 

First-quarter financial results, posted late Wednesday, continued the string of recent strong performances. Revenue was $550.6 mill; on, up 141.5%, and ahead of the Street consensus forecast at $530 million. Profits were $1 a share, nicely above the Street consensus view at 88 cents. And gross merchandise sales were $3.1 billion, up 132%. Active sellers were up 67%, while active buyers were up 90%.

But the company projects a return to Earth in the second quarter. Etsy is forecasting June quarter revenue of $493 million to $536 million, up 15% to 25% from a year ago, with gross merchandise sales of $2,8 billion to $3.1 billion, up 5% to 15% from a year ago. At the midpoint of the forecast range, sales would be down 10% sequentially.

Etsy added that due to the ongoing uncertainty related to the pandemic, it isn’t providing full year financial guidance.

“We currently expect Q2 GMS to decelerate along with the rest of e-commerce as we lap the tremendous 2020 growth rates,” CEO Josh Silverman said in a statement. “That said, we’ll keep the pedal to the metal in 2021 to continue to improve our customer experiences, make Etsy top-of-mind for the millions of buyers who have found Etsy for the first time or are relying on us now more than ever, and further invest in our very large market opportunity.”

Etsy in late trading was down 9.6%, to $66.87.

Write to Eric J. Savitz at [email protected]

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:News