(Reuters) -Etsy Inc on Wednesday forecast third-quarter revenue below market expectations, signalling softening in demand for handcrafted goods at its online market place, sending its shares down 6% after the bell.
Rising prices of essential goods has forced consumers to cut back on spending on discretionary items, which include higher-margin home furnishing goods and personalised products and gifts sold on Etsy’s marketplace.
This has taken the sheen off of Etsy’s COVID-era gains when consumers with disposable income splurged on decor and other discretionary products. The company’s consolidated gross merchandise sales (GMS) fell 0.6% to $3.01 billion in the second quarter ended June 30.
The company expects revenue for the third quarter at between $610 million and $645 million, while analysts were expecting $632.4 million, as per Refinitiv data.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Maju Samuel)
