Challenging environment affects Etsy’s marketplace growth
- Etsy shares plunge 12% on decline in gross merchandise sales
- Net income for first fiscal quarter declines compared to previous year
- Total revenue slightly increases
- Gross merchandise sales decline by 3.7%
- Analysts’ forecast for net income and revenue were slightly off
- Challenging environment for consumer discretionary products affects Etsy’s marketplace growth
- Etsy’s stock has fallen 14% this year
Etsy Inc.’s stock experienced a significant drop of 12% in after-hours trading following the release of its quarterly results. The company reported a decline in gross merchandise sales for its first fiscal quarter, with net income of $63 million compared to $74.5 million in the same quarter last year. Total revenue showed a slight increase from $640.9 million to $645.9 million. However, the key indicator of growth, gross merchandise sales, declined by 3.7% to $2.99 billion. Analysts had predicted net income of 48 cents a share on revenue of $646 million, slightly off from the actual results. Etsy’s Chief Executive, Josh Silverman, attributed the performance to the challenging environment for consumer discretionary products, which continues to hinder the growth of Etsy’s marketplace. As a result, Etsy’s stock has fallen 14% this year, while the S&P 500 index has risen by 5%.
Factuality Level: 3
Factuality Justification: The article provides relevant information about Etsy Inc.’s stock performance and quarterly results. However, it lacks depth and context, and there are no clear indications of bias or misinformation. The article is concise but could benefit from more analysis and background information to provide a better understanding of the situation.
Noise Level: 2
Noise Justification: The article provides relevant information about Etsy Inc.’s stock performance, quarterly results, and the factors affecting its growth. It includes key financial figures, such as net income, revenue, and gross merchandise sales. The article stays on topic and does not contain irrelevant or misleading information. It supports its claims with data and quotes from the company’s CEO. Overall, the article offers a concise and informative analysis of Etsy’s financial performance.
Financial Relevance: Yes
Financial Markets Impacted: Etsy Inc.’s stock
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses Etsy Inc.’s stock performance and quarterly results.
Public Companies: Etsy Inc. (ETSY)
Key People: Josh Silverman (Chief Executive)
Reported publicly:
www.marketwatch.com 
