Online marketplace Etsy has beaten Wall Street expectations for second-quarter revenue as demand for handcrafted goods and personalised gifts remained strong, despite broader pressures on consumer spending.
The firm posted revenues of $672.7m (£525m) in the three months to 30 June, ahead of analysts’ forecasts of $647.2m (£486m), according to LSEG data.
While inflation and cautious spending habits have hit many retailers, Etsy says it has continued to attract price-conscious shoppers thanks to its low seller fees and largely domestic supply chain.
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Around 90% of sellers on the platform source materials in the US, helping insulate the business from direct tariff impacts.
However, the retailer fell short on profit expectations, reporting earnings of 25 cents per share, compared to analyst estimates of 48 cents. The shortfall was attributed to a non-cash foreign exchange-related loss.
Etsy’s gross merchandise sales dropped 4.8% year on year to $2.8bn (£2.1bn), reflecting fewer overall transactions on the site.
Shares rose around 3% in pre-market trading following the update.
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