MW Etsy vows to stay 'nimble' amid tariff fallout and 'fluid' consumer confidence

By James Rogers

'The first quarter of 2025 played out largely as expected,' said Etsy's Chief Financial Officer Lanny Baker

Online marketplace Etsy Inc., which reported first-quarter results early Wednesday, said it is staying "nimble" amid the global tariff war and fluctuations in consumer confidence.

The Brooklyn, N.Y.-based company's $(ETSY)$ revenue for the quarter ending March 31 rose 0.8% year over year to $651.12 million, above the FactSet consensus estimate of $642 million.

Etsy said the results were driven by "significant growth" in on-site advertising revenue for both Etsy and its second-hand-clothing subsidiary Depop, a full quarter impact from the company's seller setup fee, and expansion of its payments operation.

Meanwhile, overall gross merchandise sales for all of Etsy's marketplaces fell 6.5% year-over-year to $2.79 billion, in line with the FactSet consensus estimate.

Related: Amazon could emerge stronger from tariffs. But earnings will show how much pain that requires.

The company swung to a net loss of $52.1 million, or a loss of 49 cents a share, after a profit of $63 million, or 48 cents a share, in the same period last year. Etsy said this reflects an impairment charge of $101.7 million related to the recently announced sale of its music-gear marketplace Reverb. Analysts surveyed by FactSet were looking for earnings of 47 cents a share.

"The first quarter of 2025 played out largely as expected," Etsy Chief Financial Officer Lanny Baker said in a statement.

"We have a rich portfolio of investments planned to support GMS improvement while evolving the Etsy marketplace customer experience to better serve buyer and seller needs," Baker added. "We are keeping a clear eye on Etsy's long-term opportunities, while also staying nimble in the face of uncertainty given recent tariff announcements and the fluid state of consumer confidence in our core markets."

Related: Etsy misses Wall Street's revenue estimate as marketplace sales dip

For the second quarter, Etsy said that its consolidated gross merchandise sales are expected to decline at a rate similar to, and potentially slightly better than, the year-over-year performance reported for the first quarter. The company's take rate, which is consolidated revenue divided by consolidated gross merchandise sales, is expected to be similar to the first quarter, which was 23.3%.

Etsy shares gained 0.8% in premarket trading. The stock has fallen 12.8% in 2025, outpacing the S&P 500 index's SPX decline of 5.5%.

This is a busy week for e-commerce earnings. Etsy rival eBay Inc. $(EBAY)$ reports first-quarter results after market close and e-commerce giant Amazon.com Inc. $(AMZN)$ reports after market close Thursday.

-James Rogers

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April 30, 2025 09:01 ET (13:01 GMT)

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