Etsy Forecasts Downbeat Third Quarter as Demand Softens

August 3, 2023

Etsy Inc. has forecasted lower-than-expected revenue for the third quarter, signaling a softening in demand for handcrafted goods on its online marketplace. The rise in prices of essential goods has led consumers to reduce spending on discretionary items, including higher-margin home furnishing goods and personalized products sold on Etsy’s platform. The company’s consolidated gross merchandise sales fell 0.6% in the second quarter, and concerns about the return of student loan payments and dwindling savings may further impact sales in the future.

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