Etsy Reports Strong Q3 Performance

(Reuters) – Etsy beat third-quarter gross merchandise sales (GMS) and revenue estimates on Wednesday, driven by steady demand from new and regular buyers for handcrafted antiques on its online marketplace, leading to an 11% increase in shares during extended trading.

The company’s board approved a $1 billion share repurchase program after repurchasing approximately $156 million, or 2.7 million shares, during the quarter.

In September, U.S. retail sales showed solid growth as falling gasoline prices and job growth boosted consumer confidence in discretionary shopping for apparel and accessories.

This trend has benefitted Etsy, which offers a platform for higher-margin items, including home decor and clutches. Rachel Wolff, an analyst at eMarketer, noted that Etsy's focus on gifting provided a slight boost in sales, while investments in customer experience aim to enhance engagement and purchase frequency.

Etsy reported consolidated GMS of $2.92 billion for the quarter, exceeding analysts' expectations of $2.89 billion, according to data compiled by LSEG. Quarterly revenue reached $662.4 million, surpassing the anticipated $652.5 million.

Etsy's increased marketing investments successfully attracted customers despite competition from e-commerce giants like Amazon and low-cost platforms such as Temu.