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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 (NASDAQ: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 (NYSE: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.
