An employee walks past a quilt displaying Etsy Inc. signage at the company’s headquarters in the Brooklyn.
Victor J. Blue/Bloomberg via Getty Images
Etsy reported better-than-expected second-quarter results after the bell on Wednesday, but it gave guidance for the current quarter that suggests the pandemic-fueled commerce boom may be stalling.
The stock slid as much as 14% in extended trading.
Here’s how the company did:
- Earnings: 68 cents per share vs. 63 cents per share expected, according to analysts surveyed by Refinitiv
- Revenue: $528.9 million vs. $524.7 million expected, according to analysts surveyed by Refinitiv
Revenue growth slowed to 23.4% year-over-year during the quarter. That’s a marked deceleration from recent quarters, when sales growth topped 100% for each of the past four quarters.
The results underscore concerns that the pandemic bump in e-commerce activity is fading as vaccinated consumers spend less online and more on travel and other services. Etsy, which operates an online marketplace known for handmade and personalized goods, has been one of the biggest beneficiaries of the pandemic, with shoppers turning to the site for things like face masks and home goods.
For the current quarter, Etsy said it expects revenue to come in between $500 million and $525 million, implying a growth rate of 13.5% year-over-year at the midpoint. Analysts surveyed by StreetAccount were looking for third-quarter sales of $527.5 million.
This story is developing. Check back for updates.