Etsy (NASDAQ:ETSY) news for Friday includes ETSY stock heading higher following a video conference between its executives.
The video conference has the Etsy leaders discussing how the coronavirus from China is affecting its business. That includes how shoppers are being infrequent in their visits to the website and what the company expects.
According to an Etsy news release, the company is seeing days of both negative and positive year-over-year Consolidated GMS. The company points out that this type of volatility isn’t something it has seen in the past.
While that may seem bad, Etsy leaders are quick to point out that there’s still good news. The company says its Consolidated GMS for the first quarter of 2020 comes in at roughly $ 1.4 billion, which is up 32% from the same time last year.
The Etsy news also mentions that even a worst-case scenario isn’t too bad. If the company was to experience its worst week in March for the rest of the year, it would still see its 2020 EBITDA margin at the same levels, or slightly higher, than in 2019.
Etsy is also planning to take out more off-site ads to promote its sellers. The company is going to spend $5 million on this. It will also be extending due dates on bills to give sellers extra time to pay them.
ETSY stock was up 8.74% as of Friday afternoon but is down 22.99% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.
