Etsy reported better-than-expected second-quarter results after the bell on Wednesday, but it offered guidance for the current quarter that suggests the pandemic-fueled e-commerce boom may be ending.
The stock slid as much as 14% in extended trading.
Here’s how the company did:
- Earnings: 68 cents per share vs. 63 cents per share expected, according to analysts surveyed by Refinitiv
- Revenue: $528.9 million vs. $524.7 million expected, according to analysts surveyed by Refinitiv
Revenue growth slowed to 23.4% year-over-year during the quarter, which is a notable deceleration from recent quarters, when sales growth topped 100%.
The results underscore concerns that the pandemic bump in e-commerce activity is fading as vaccinated consumers spend less online and more on travel and other services. Last week, shares of Etsy, eBay and Wayfair were all down after Amazon announced a forecast that fell short of prior expectations.
Etsy, which operates an online marketplace known for handmade and personalized goods, has been one of the biggest beneficiaries of the pandemic, with shoppers turning to the site for everything from face masks to home goods.