Etsy Posts 32% Higher Gross Sales and Withdraws 2020 Guidance

Etsy, the internet retailer of handmade goods, says first-quarter gross merchandise sales jumped 32% from a year earlier, to $1.4 billion.
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Etsy  (ETSY) - Get Report reported first-quarter consolidated gross merchandise sales jumped 32% year-on-year to $1.4 billion, in line with Wall Street's expectations.

The Brooklyn, N.Y., company also said in a Securities and Exchange Commission filing that "in light of the macroeconomic impact of Covid-19, Etsy has withdrawn its previously provided 2020 annual guidance, originally provided on Feb. 26, which had assumed stable macro conditions."

Shares of the internet retailer of handmade goods at last check were up 9.1% to $37.95.

During the company's so-called fireside chat, Chief Financial Officer Rachel Glaser said Etsy has "high-quality capital on our balance sheet and we're in a very strong financial position."

Glaser said that as of Dec. 31, Etsy had more than $800 million of cash and short-term investments, the majority of which is in cash or in highly liquid investments. 

None of the company's debt obligations are due before 2023, Glaser said, adding that "we have a revolver that has a $200 million line that's currently undrawn with a 2023 maturity."

Chief Executive Josh Silverman said the company shut its offices in early March in response to the coronavirus pandemic. Last month, he said, "there was a lot of focus for consumers on getting staples that could arrive right now."

"So people wanted hand sanitizer and bathroom tissue, and they wanted it to arrive right away - and that's not necessarily Etsy’s special moment," he said.

Silverman said the wedding category and the jewelry category slowed in March since "this might not be the moment that people are thinking about getting a gift for themselves or someone else."

"On the bright side," he said, "categories like self-care, puzzles and games to do at home, or bath and beauty, are actually [much more stable] right now as Etsy is open for business at a time when many people aren't."