(Etsy) Etsy stock fell 16% on Thursday after the marketplace’s gross merchandise sales volume decreased by 2.0% from the prior year to $2.8 billion in the first quarter of 2022.
Etsy said the GMS performance was hit by headwinds relating to consumer spending, geopolitical events, and continued reopening. The marketplace acquired about 7 million new buyers in the quarter.
The retailer still managed $3.3 billion of consolidated GMS, an increase of 3.5% from the prior year.
Etsy also booked lower earnings in the quarter, with a net income of $86.1 million, a decline of 40.1% from the prior year. The lower-income was due to higher employee compensations, especially due to increased headcount on the company’s addition of Depop and Elo7.
The non-GAAP adjusted EBITDA was posted at $159.2 million, a decline of 13.5% from the previous year.
Despite the lower earnings, Etsy’s revenue jumped 5.2% to $579.27 million in the first quarter. The marketplace revenue was $427.7 million, up by 3.4% from the prior year.
ETSY: NASDAQ is down -16.27%.
