Etsy plunges to all-time low after earnings
Etsy shares slipped by more than 7% to an all-time low after the company reported third-quarter earnings on Tuesday.
The online marketplace for handcrafted goods reported a diluted net loss per share of $0.15, better than the consensus forecast for -$0.40 according to Bloomberg. Revenues totaled $65.7 million, below the forecast for $66.4 million.
The stock dropped to as low as $10.21 per share, a level it has never reached since shares went public in April. It's down 63% from then.
Etsy said its gross merchandise volume, or the total value of transactions across its marketplace, rose 21.7% year-on-year to $568.8 million.
The company said the strong dollar continued to dent the value of its sales abroad, and the foreign-currency impact during the third quarter was worse than it was in the second. But compared to a 23% hit in Q3 2014, this quarter was just 12.5%.
Etsy also said its operating expenses were driven by an increase in marketing spending, which rose 87.8% year-on-year.
CEO Chad Dickerson said in the earnings statement that the company was looking forward to "a great holiday season".
After Amazon launched its rival 'Amazon Handmade' last month, analysts at Wedbush said sellers could shift their items over, and that would dilute revenue growth.
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