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Jul 28, 2022
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Etsy sales dip in second quarter on macro headwinds

Published
Jul 28, 2022

Online marketplace Etsy Inc. announced on Wednesday its gross merchandise sales (GMS) for the second quarter dipped by 0.4%, as the U.S e-tailer felt the adverse effects of macro headwinds during the quarter.

The Brooklyn, New York-based company said consolidated GMS fell to $3 billion, or up 2.6% on a currency neutral basis, hurt by macro headwinds including reopening, pressures on consumer discretionary spending, foreign exchange rate volatility, and ongoing geopolitical events.


Depop


For the three months ending June 30, Etsy marketplace GMS was $2.6 billion, down 6% year-over-year, and up 141% compared to the second quarter of 2019. Non-U.S. GMS for the Etsy marketplace was 44% of overall GMS, increasing 3% year-over-year on a currency-neutral basis.

During the quarter, the Etsy marketplace acquired approximately 6 million new buyers.

Etsy's consolidated revenue was $585.1 million, up 10.6% versus the second quarter of 2021. This revenue performance reflects the Etsy marketplace transaction fee increase which went into effect on April 11, 2022, the company added.

Net income was $73.1 million, down 25.6% year-over-year, with diluted earnings per share of $0.51. The decline in net income was primarily due to increased employee compensation-related expenses, as total employee headcount increased approximately 70% year-over-year, which included increased headcount from the acquisitions of Depop and Elo7, the company continued.

"Our second quarter results once again reflect that Etsy has maintained most of our pandemic gains, and that we are able to deliver strong bottom line performance while simultaneously investing in key initiatives," said Josh Silverman, Etsy, Inc. chief executive officer.

"Despite facing headwinds caused by macroeconomic and geopolitical factors, we believe the improvements we've driven in customer experiences across the Etsy marketplace and our House of Brands, coupled with continued focus on our 'Right to Win' strategy, will enable us to unlock the enormous long-term opportunities we see ahead."

Looking ahead, Esty's third-quarter guidance for consolidated GMS is expected to sit between $2.8 billion and $3 billion, with revenues expected to lie between $540 million and $575 million.

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