Etsy drops on CEO shake-up and weaker-than-expected core sales
Shares of Etsy fell as much as 9% in early trading after the online marketplace announced a leadership transition and posted some disappointing Q3 results before market open on Wednesday morning.
In a press release, the company announced that current President and Chief Growth Officer Kruti Patel Goyal would replace Josh Silverman as CEO after eight years at the helm, effective January 1, 2026.
But Etsy’s report, also released this morning, showed that sales slumped in the third quarter. Gross merchandise sales were just $2.72 billion, down from last year’s $2.92 billion and Wall Street estimates of $2.76 billion, per Reuters. Revenue was bit more solid, though mainly because the company seems to have increased its take rate (Etsy’s share of sales made on the platform) in its marketplace business to 24.9%, up from 22.7% for the same period last year.
Promoting its growth chief to CEO could improve Etsy’s position looking forward; with the number of active buyers and sellers dropping over the last year, getting back to growth in the AI era will be a top priority for the company.
But Etsy’s report, also released this morning, showed that sales slumped in the third quarter. Gross merchandise sales were just $2.72 billion, down from last year’s $2.92 billion and Wall Street estimates of $2.76 billion, per Reuters. Revenue was bit more solid, though mainly because the company seems to have increased its take rate (Etsy’s share of sales made on the platform) in its marketplace business to 24.9%, up from 22.7% for the same period last year.
Promoting its growth chief to CEO could improve Etsy’s position looking forward; with the number of active buyers and sellers dropping over the last year, getting back to growth in the AI era will be a top priority for the company.
