(Reuters) – Etsy beat third-quarter gross merchandise sales (GMS) and revenue estimates on Wednesday, helped by steady demand from new and habitual buyers for handcrafted antiques and customized jewelry and clothing at its online marketplace.
Shares of the company jumped about 10% after the bell.
U.S. retail sales saw a solid growth in September as easing prices of gasoline and an uptick in job growth boosted consumer confidence in shopping for discretionary items, including apparel and accessories.
This has helped companies like Etsy, which provides an online platform for higher-margin goods ranging from home decor to clutches.
“While 2024 has been a challenging period for discretionary goods, we are investing with discipline and focus to make Etsy
even more Etsy — which we believe will lift our boat when the tide comes back in again,” CEO Josh Silverman said.
The company posted quarterly revenue of $662.4 million, compared with analysts’ expectations of $652.5 million.
For the quarter, Etsy posted consolidated GMS — a key metric to measure sales — of $2.92 billion, compared to analysts’ average estimate of $2.89 billion, according to data compiled by LSEG.
The company’s efforts to increasingly invest in marketing further helped attract customers despite stiff competition from e-commerce retailers such as Amazon and PDD Holdings’ low-cost e-commerce platform Temu.
However, the company’s earnings per share of 45 cents in the quarter ended Sept. 30 came below analysts’ estimates of 53 cents per share.
(Reporting by Anuja Bharat Mistry in Bengaluru; editing by Alan Barona)
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