Etsy shares plunge 12% on decline in gross merchandise sales

By Jon Swartz

Etsy Inc.'s stock plunged 12% in after-hours trading Wednesday after the company posted quarterly results that included a decline in gross merchandise sales.

Etsy (ETSY) reported net income of $63 million, or 48 cents a share, for its first fiscal quarter, compared with $74.5 million, or 53 cents a share, in the comparable quarter a year ago.

Total revenue edged up to $645.9 million from $640.9 million in the year-ago quarter. Specifically, GMS - a key indicator of growth - declined 3.7% on a year-over-year basis to $2.99 billion.

The consensus of analysts surveyed by FactSet had forecast net income of 48 cents a share on revenue of $646 million.

"Our first-quarter performance, while in line with our guidance, was pressured by the challenging environment for consumer discretionary products, which continues to be a headwind to Etsy marketplace growth," Chief Executive Josh Silverman said in a statement announcing the results.

Shares of Etsy have tumbled 14% this year through Wednesday, while the benchmark S&P 500 index SPX is up 5%.

-Jon Swartz

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05-01-24 2019ET

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