Even in the face of a challenging financial environment, Etsy (ETSY) is investing hundreds of millions of dollars into its platform as the firm gears up for the upcoming Christmas season, according to its chief executive. This comes after years of epidemic expansion.
CEO Josh Silverman stated, “We’re investing more than $600 million in marketing this year to make sure that we’re front of mind with buyers at a time when they need us most.”
Along with launching a new app for people who want to sell on etsy, the firm is also investing around $25 million in the recently announced Etsy Purchase Protection Program this year.
The company’s financials reveal that Etsy has been resilient over the previous year, outperforming expectations on both the top and bottom lines since September 2021. Etsy vendors made nearly $3 billion in sales in Q2 2022.
Even as retail rivals like Walmart (WMT) and Target (TGT) are cutting their pricing in front of the holidays, Silverman said Etsy is forecasting “quite robust sales” for the third quarter.
As of Thursday’s close, shares of Etsy are down nearly 46% year to date. In November 2021, the company’s stock price reached an all-time high of roughly $274 per share.