In pre-market trading, Etsy's (ETSY, Financial) shares rose after the company reported better-than-expected first-quarter revenue. The e-commerce platform, known for connecting buyers and sellers of handmade goods, reported a net loss of $52.1 million, or $0.49 per share, due to a $101.7 million impairment charge from selling Reverb. Etsy plans to focus on its core marketplace and Depop, a secondhand platform acquired in 2021.
Etsy has been navigating the impacts of tariffs introduced during Donald Trump's presidency. CFO Lanny Baker emphasized the company's flexibility in the face of tariff announcements and fluctuating consumer confidence. Etsy has also formed a "small operations task force" to guide buyers and sellers on shipping schedules and other information. To mitigate tariff costs, Etsy has highlighted domestic sellers on its site.
According to FactSet, Etsy's gross merchandise sales (GMS), a key performance metric, fell 6.5% year-over-year to $2.79 billion, aligning with market expectations. The company expects a similar or slightly better decline in GMS for the second quarter. Active sellers dropped 11.3% to 8.1 million, marking four consecutive quarters of decline, while active buyers fell to 94.8 million for the second straight quarter.
