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Etsy shares jumped in premarket trading on Wednesday after the company posted better-than-expected revenue for the first quarter.
Here’s how the company did:
- Revenue: $651.2 million vs. $643 million, according to LSEG
- Loss: Loss per share of 49 cents
The e-commerce company reported a net loss of $52.1 million, or 49 cents per share, due to Etsy taking a $101.7 million impairment charge from the sale of Reverb. Etsy said earlier this month it will sell off the musical instrument marketplace it acquired in 2019 to focus on its core marketplace and Depop, the secondhand marketplace it bought in 2021.
Etsy operates an online marketplace that connects buyers and sellers with mostly handcrafted goods. Like many other retailers, the company is digesting the impact of President Donald Trump’s sweeping tariffs, though CEO Josh Silverman said in February that the company is “vastly less” dependent on products from China, which was hit by aggressive levies of 145%.
Etsy CFO Lanny Baker said the company is “staying nimble in the face of uncertainty” around the tariff announcements and “the fluid state of consumer confidence in our core markets.”
The company said it also established a “small operational task force” to address the tariffs, which has provided buyers and sellers with guidance on shipping timelines, along with other information. Earlier this month, Etsy began highlighting products available for purchase from domestic sellers as a way for shoppers to circumvent the extra costs associated with Trump’s tariffs.
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