Etsy, the Brooklyn-based e-commerce company, faced a 5.4% dip in shares during post-market trading, settling at $73.00. This slip follows the news that their crucial gross merchandise sales metric is anticipated to decrease in the first quarter.
Sales Expected to Decline
The company foresees gross merchandise sales to drop in the low-single-digit range, with a possibility of a mid-single-digit range if current trends do not improve. Etsy predicts the first quarter to mark the low point in year-over-year growth for both general merchandise sales and revenue.
Optimistic Outlook
Despite this setback, Chief Executive Josh Silverman remains optimistic. On a call with analysts, he stated, "We're confident that we can get back to growing faster and taking share more broadly."
Recent Developments
The company's forecast follows a 0.7% decline in gross merchandise sales in the fourth quarter, paired with a 4.3% increase in sales. Additionally, Etsy recently implemented layoffs, reducing its marketplace workforce by 11%, or approximately 225 employees, as a part of a cost-saving restructure due to stagnant gross merchandise sales since 2021.
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