Etsy shares slide as loss widens
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Investors emptied Etsy shares from their carts after the online crafts marketplace said its loss widened in the fourth quarter and that it expects revenue growth to slow next year.
The New York-based company said its net loss widened to $21.4m, or 19 cents a share, compared with a loss of $4.2m, or 4 cents a share, in the year ago period. The loss included a foreign exchange loss of $18m and a tax and interest expenses. Etsy shares slid 3 per cent to $11.74 in extended trading.
Revenues rose by a quarter to $110.2m in the three months ended in December from a year ago. That topped Wall Street expectations for $108m.
Looking ahead the company said it expects revenue growth to cool to between 20 to 22 per cent in 2017, following a 33 per cent rise in 2016.
Etsy’s shares have declined more than 26 per cent since it went public in 2015, in part as sentiment soured amid increased competition from Amazon, which in 2015 entered the artisanal marketplace with “Handmade at Amazon”. Etsy has more recently announced with Etsy Studio*, a new global craft supplies market, and is introducing Google Shopping ads for its vendors.
*Piece amended to clarify that Etsy Studio was not launched to stave off competition from Amazon.
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