Etsy Inc.’s ETSY, -2.63% stock declined 4% in extended trading Wednesday after the online-shopping site reported quarterly results that barely topped analyst revenue estimates and forecast a decline in gross merchandise sales. Etsy reported fiscal third-quarter net income of $87.9 million, or 64 cents a share, compared with a loss of $963.1 million, or $7.62 a share, in the same quarter a year ago.
Revenue rose 7% to $636.3 million, from $594.5 million a year ago. “There’s no doubt that this is an incredibly challenging environment for spending on consumer discretionary items,” Etsy Chief Executive Josh Silverman said in a release. “It’s therefore important to acknowledge that this volatile macro climate will make it challenging for us to grow this quarter.” Analysts surveyed by FactSet had expected on average net earnings of 50 cents a share on revenue of $631.1 million. Shares of Etsy have slumped 49% this year, while the broader S&P 500 index SPX, +1.05% has increased 10%.