July 31 (Reuters) – Etsy beat Wall Street expectations for second-quarter revenue and gross merchandise sales on Wednesday, helped by steady demand for personalized gifts at its online marketplace. Moreover, Etsy revenue growth underscores the platform’s resilience in a competitive market. #EtsyRevenueGrowth
Aggressive investments in marketing and advertising have helped attract more customers to Etsy’s platform, while occasions such as Mother’s Day and Father’s Day as well as graduation ceremonies boosted gift sales.
The company reported a 4.1% year-over-year rise in its gifting gross merchandise sales.
The number of Etsy’s active buyers rose 0.4% to 96.6 million in the quarter ended June 30, while the number of active sellers rose 5.9% to 8.8 million.
Although special occasions supported Etsy’s gifting business, steep costs of living are squeezing household budgets, making consumers more picky while shopping for non-essential items such as vintage handicrafts, furniture, apparel, and luxury items like jewelry.
“Etsy will remain challenged to meaningfully grow its seller base as well as active buyers who purchase frequently given consumers’ shift towards lower-cost alternatives and new retail players like Temu and TikTok Shop,” said Sky Canaves, analyst from eMarketer. #EtsyRevenueGrowth
Transitioning to new product offerings and maintaining high demand for personalized gifts are key factors in this success. Thus, Etsy revenue growth remains a vital indicator of its ongoing success.
