Etsy’s stock could be on sale right now given what looks to be a hot start to the crucial holiday shopping period for the online retailer.
“We are seeing more people come to the site faster. We saw a 50% increase [in traffic] in Cyber Friday [Black Friday] from just a week before,” Etsy Chief Technology Officer Mike Fisher said on Yahoo Finance’s On the Move. Fisher added Etsy has seen a “significant” increase in website traffic over the past week with the holiday shopping rush in full swing.
“We have seen over a 100% increase over a normal day in the summer this week,” Fisher said.
Etsy looks primed to benefit from what’s shaping up to be a massive season for online shopping.
Cyber Monday sales as of 9:00 a.m. ET touched an impressive $473 million, according to Adobe Analytics which tracks sales from various retail websites. Adobe predicts Cyber Monday will hit $9.4 billion in sales, the largest shopping day of the year, and up a cool 18.9% from a year ago.
From Nov. 1 to Dec. 1, consumers have spent a record $72.1 billion online. That’s up 16.3% from last year, according to Adobe.
Ultimately Fisher’s comments should provide some near-term relief to Etsy’s investors.
Etsy’s stock (ETSY) has dropped 16% over the past three months per Yahoo Finance Premium data. Some in the market haver fretted over Etsy’s major push to to offer free shipping to compete with larger rivals Amazon, Walmart and Target and its impact on the company’s margins. Moreover, all three of those companies continue to execute very well — offering shoppers unbeatable deals and in the case of Walmart and Target, new same-day delivery services.
Lost in the Etsy selloff, however, is that it’s one of the few online retailers that is profitable (and has been profitable for some time). Through the nine months ended Sept. 20, Etsy’s sales and net income have surged 35.9% and 79.3%, respectively.
Judging by Fisher’s comments, profits are in store for the fourth quarter...perhaps more than the market currently thinks.