Mask-buying, online shopping lifts Etsy Q2 sales above expectations

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Shares of Etsy Inc. rose more than 3% in the extended session Wednesday after the company said its second-quarter revenue more than doubled as more people shopped online due to the pandemic and some shopped for COVID-19-related items such as masks. “Our extremely strong second quarter results … are a testament to the agility of our team, the strength of our brand, the innovation of our sellers, and the unique and special nature of inventory on our core Etsy marketplace,” Chief Executive Josh Silverman said in a statement. Etsy said it earned $96.4 million, or 75 cents a share, in the quarter, compared with $18 million, or 14 cents a share, in the year-ago period. Revenue rose 137% to $429 million, from $181 million a year ago. Analysts polled by FactSet expected Etsy to report profit of 39 cents a share on sales of $330 million. Etsy said it saw an influx of 18.7 million new buyers and reactivated buyers, or those who hadn’t bought on Etsy in a year or more. Etsy didn’t give guidance for the year, citing the pandemic, but guided for a third-quarter revenue growth between 85% and 115%. “Events of the last few months have driven dramatic shifts in consumer shopping habits, which we believe will increase the total available market opportunity for Etsy,” Silverman said. The positive trends in the second quarter are likely to have extended through July, he said. Etsy ended the regular trading day up 4.4%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.