Etsy's Strong Margins Boost Results

Here's our initial take on 's (NASDAQ: ETSY) fiscal 2025 first-quarter financial report.

As you can see in the table, Etsy beat expectations on both revenue and earnings in the first quarter. But the real story is how the company did it.

Gross merchandise sales declined 6.5% year over year, a significant amount. This was fueled by a 3.4% decline in active buyers and a 3.5% decline in spending per average active buyer, indicating that consumers are more hesitant to spend money right now. What's more, the number of "habitual buyers," Etsy's most frequent customers, declined by 11% year over year, and the number of active sellers on the platform declined sharply from 9.1 million to less than 8.1 million.

Source Fool.com