📉 Revenue Miss Hits Hard
Etsy reported $852.2M in Q4 revenue, missing the $862.8M estimate. Gross merchandise sales (GMS) fell 6.8% to $3.74B, missing FactSet's $3.8B forecast. Stock dropped 10% after results. CEO Josh Silverman cited weak demand and competition as key issues.
🛍️ Holiday Shopping Slump
Etsy’s holiday season failed to boost sales. Despite U.S. online holiday spending rising 9% to $241.1B, Etsy faced a “pullback in consumer discretionary spending.” Categories like furniture and jewelry saw softer demand, impacting the company’s core offerings.
⚔️ Rising Competition
Temu, Shein, and TikTok Shop are gaining ground. Etsy is fighting mass-produced goods on its platform while rivals push aggressive pricing. To stand out, Etsy is focusing on artisanal quality and unique products instead of “cheap and fast” strategies.
📊 2025 Strategy Shift
Silverman says Etsy is prioritizing site improvements over quick sales. The company is investing in product quality and shopping experience, which cost “hundreds of millions” in lost GMS last year. Despite short-term pain, Etsy hopes this will drive long-term growth.
Can Etsy survive the e-commerce battle against Temu and Shein?
