The Etsy NYC headquarters building is seen in New York City.
For the third quarter, Etsy reported adjusted earnings per share of 63 cents on revenue of $678 million, which exceeded consensus estimates of 53 cents per share and $655.3 million, according to LSEG.
Etsy shares fell more than 5% in morning trading following the news, which was announced alongside its third-quarter earnings report . The company reported a beat on the top and bottom lines, but gross merchandise sales were down year over year.
Kruti Patel Goyal, Etsy's president and chief of growth who previously oversaw its Depop resale app, will take the helm at Etsy effective Jan. 1, 2026, the company said.
Etsy CEO Josh Silverman will step down from his position and move to the role of executive chairman at the end of the year, the online marketplace said Wednesday.
Gross merchandise sales, or the total volume of goods sold on the platform, came in at $2.72 billion. That's a 6.5% decline from the same period a year ago, when GMS was $2.91 billion, but higher than expectations for $2.68 billion, according to StreetAccount.
Active buyers on Etsy slid 5% year over year to 86.6 million, while sellers on the platform totaled 5.5 million during the quarter, a decrease of 10.9% from the same period a year ago.
Depop, which Etsy acquired for $1.62 billion in 2021, was a brighter spot in the results. Depop GMS soared 39.4% year over year to $292.1 million. Active sellers jumped nearly 41% to 3 million, while active buyers were up nearly 40% to 6.6 million.
Silverman, a former eBay executive, held the top job for the last eight years and guided the company through a demand surge brought on by the Covid-19 pandemic, when shoppers flocked to the site to buy up face masks.
Etsy has struggled to grow its business since the pandemic e-commerce boom, while it continues to contend with stiff competition from Amazon and Shopify , as well as China-linked upstarts Temu, Shein and TikTok Shop.
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