📉 Market Impact
Etsy's share value dropped 15% as the S&P 500's lowest performer, following a report of decreased sales and weak future projections. Analysts had forecasted slightly higher gross merchandise sales of $3.03B, but Etsy reported only $2.99B.
🗣️ CEO's Take
"Our first quarter was tough due to a challenging market for discretionary items," stated Etsy's CEO Josh Silverman. "These conditions are a significant barrier to our marketplace's growth."
🆚 Competitive Strain
Etsy confronts escalating threats from Temu and Shein, who are leveraging aggressive market strategies. This rivalry intensified last year, prompting Etsy to downsize its workforce to stay competitive.
🚀 Future Expectations
Despite current setbacks, Etsy forecasts a similar decline for next quarter, expecting gross merchandise sales around $2.9B, below Wall Street's $3.07B expectation. The online marketplace currently connects 9M sellers with 91.6M buyers.
Will Etsy recover against Temu and Shein?
