Etsy, the American e-commerce website which focuses on handmade and vintage items and craft supplies is on a roll.CEO Josh Silverman on Thursday told CNBC that the online retailer has added on to new customers during the pandemic leading to staggering growth across various segments of the market.
“This is a moment when we have a chance to win the loyalty of millions of people and we’re working so hard to do that,” he said in a ” Mad Money ” interview with Jim Cramer.
Etsy items fall under a wide range of categories, including precious jewelry, bags, clothing, home decor and furniture, toys, art, as well as craft supplies and tools. All vintage items must be at least 20 years old.
After Wednesday’s close, Etsy quarterly profit jumped more than 400% from a year ago, as on Wednesday close. The company earned $96.4 million, or 75 cents per share, up from $18 million in the year-ago June quarter. Revenue came in at $429 million in the three-month period, a 137% increase year over year.
According to Factset, these numbers topped the 39 cents per share and $330 million of revenue as per Wall Street expectations. The company now has 3.1 million sellers, which is 34% more since last year, and above 60 million active buyers, which is an increase of 41%.
Silverman, its CEO for the last three years, highlighted that Etsy produced $2.7 billion of gross merchandise sales during the period. That figure is up 146% from a year ago.”Our mission is keeping commerce human,” Silverman said.
With more and more people confined indoors due to the ongoing pandemic, the home furnishing business showed a massive online thrust with sales growing by a whopping 125%. Sellers on the platform sold more than $2 billion worth of home decor and home furnishing in the last 12 months, the CEO stated.
“Home furnishings was yet again our biggest category,” he said. Jewelry and apparel were two other shining stars as merchants sold about $1.2 billion worth of jewelry and $775 million worth of apparel in the past year, Silverman noted. As for the second quarter, sales were up 50% year over year for the former and nearly 60% for the latter, he added.
“These are massive categories, and Etsy’s growing faster than the market leader in each of them,” Silverman said.
Showing strong performance for the second quarter, Etsy shares sold off Thursday closing down 3.6% at $130.66. The stock spent the past six sessions continuously rallying to jump by 36% at Wednesday’s close from late July.
EThe stock has nearly tripled from the start of the trading year.