Etsy Shares Drop After Missing Holiday Sales Forecasts

The e-commerce platform cites weak discretionary spending and rising competition for its third consecutive decline in holiday-quarter sales.

Etsy reported $852 million in Q4 2024 revenue, falling short of analysts' expectations of $862 million, despite a 1.2% year-over-year increase.
Gross merchandise sales (GMS), a key metric for the company, declined 6.8% to $3.74 billion, missing estimates of $3.88 billion.
Consumer spending on Etsy's marketplace fell as buyers prioritized essentials over discretionary goods, and competition from platforms like Temu and Shein intensified.
Etsy's active seller base dropped by 10% year-over-year, while active buyers declined by 1%, reflecting broader challenges in the e-commerce space.
The company projects a similar year-over-year GMS decline for Q1 2025 but remains focused on boosting buyer engagement through personalized shopping features.