An employee walks past a quilt with Etsy Inc. signage. at the company’s headquarters in Brooklyn.
Victor J. Blue / Bloomberg via Getty Images
Etsy shares fell more than 9% in non-business trading on Wednesday after the company reported first-quarter earnings results that surpassed analyst estimates, but warned it expects total sales of goods on its platform in the second quarter. will slow down. faces difficult comparisons to last year’s pandemic-boosted results.
Here’s how the company fared versus expectations:
- Merits: $ 1.00 per share, adjusted, versus $ 0.88 expected
- Revenue: $ 551 million, versus $ 530 million expected
The online marketplace forecasts gross merchandise sales for the second quarter of between $ 2.8 billion and $ 3.1 billion, up 5% to 15% from last year’s quarter. Analysts polled by Refinitiv were looking for gross goods sales of $ 2.95 billion. Gross sales of goods are a closely watched industry measure that measures the total value of goods sold on the site.
“We currently expect GMS to slow down in the second quarter of 2021, along with the rest of ecommerce, while bypassing the massive growth rates of 2020,” Etsy CEO Josh Silverman said in a statement. “That said, in 2021 we will keep the pedal on the job to continue to improve our customer experiences, making Etsy top-of-mind for the millions of buyers who first found Etsy or who now rely more on us. ever, and continue to invest in our very large market opportunity. “
Etsy did not provide full-year guidance citing the uncertainty surrounding the coronavirus pandemic.
Etsy saw its business growth early in the pandemic, as shoppers turned to the company and other online retailers for goods amid brick-and-mortar store closings and the coronavirus raged, forcing many to stay indoors. Etsy, which sells a variety of handmade and vintage items, experienced an “overwhelming demand” for face masks.
That demand appears to be declining as the economy continues to reopen and the roll-out of vaccines accelerates. Etsy said it sold $ 72 million worth of face masks in the first quarter, compared to a peak of $ 346 million in the second quarter of 2020.
Pandemic-fueled ecommerce businesses, including Etsy, eBay and Wayfair, remain under great pressure from investors to prove that their businesses can continue to grow steadily in a post-pandemic world.