Etsy shares fell, after the online marketplace posted lower-than-expected fourth quarter earnings and issued a revenue guidance that’s below the Street forecasts.
Etsy is expecting its gross merchandise revenue in the current fiscal first quarter to be between $2.95 billion to $3.15 billion, vs. the year-ago quarter’s revenue of $3.25 billion. Analysts were expecting $3.17 billion.
For the fourth quarter, Etsy posted earnings of 77 cents a share, missing analysts’ estimate of 80 cents a share. Sales of $807.2 million, however, topped the Street expectations of $755.4 million.
“In a stable macro environment, the math would suggest a return to GMS growth rates in the teens in the second half of this year. However, the data and information we are seeing so far in 2023 related to consumer spending shifts and pressure from the macro environment makes us very cautious,” Chief Financial Officer Rachel Glaser mentioned during the company’s earnings call.