Etsy CEO Josh Silverman expressed optimism Thursday across the e-commerce market’s acquisition of secondhand fashion app Depop, telling CNBC it additional strengthens the corporate’s publicity to younger customers.
“For Etsy, Depop is likely to be for Etsy what Venmo was for PayPal: The selection of the following technology,” Silverman mentioned in an interview with Jim Cramer on “Mad Money.” “We’re extremely enthusiastic about that.”
PayPal added Venmo, the peer-to-peer funds app that’s fashionable with Gen Z and millennials, to its portfolio in 2013 as part of a larger acquisition for funds platform Braintree.
Etsy introduced the $1.62 billion deal for Depop in June and the transaction closed last month. Depop operates an internet market the place individuals can purchase and promote used garments. Based a decade in the past within the U.Ok., Depop has cultivated a robust relationship with younger shoppers.
The resale attire market, typically, is expected to grow significantly in the coming years as customers search for methods to handle environmental and moral issues about so-called “fast fashion.”
The Depop web site on a laptop computer pc organized within the Brooklyn borough of New York, U.S., on Wednesday, June 2, 2021.
Gabby Jones | Bloomberg | Getty Pictures
Silverman mentioned Depop might have gone public — rival Poshmark accomplished an preliminary public providing in January — however the firm felt its values aligned with Etsy, which is understood for its giant community of impartial sellers who create customized and home made merchandise.
Etsy’s core market noticed explosive development in the course of the coronavirus pandemic, nevertheless it has waned in latest months. The corporate reported better-than-expected second-quarter revenue and earnings Wednesday night, however its steering for the present quarter got here in under analyst forecasts.
The inventory fell almost 10% Thursday, closing at $182.41 per share. Its low of the session was $174.90.
Silverman mentioned he remained assured in Etsy’s development, particularly when gross sales for objects outdoors of Covid face masks, which briefly surged as a result of pandemic.
“In the event you take a look at our development price excluding masks, we mentioned it should be mid-teens and once more, that is over the hardest comps, the quickest development charges of any e-commerce website final yr. We’re nonetheless rising within the mid-teens,” Silverman mentioned. “In the event you take a look at us on a two-year stack — in different phrases, what did we information to in Q3 in 2021 versus Q3 of 2019 — I nonetheless suppose we’ll be amongst the best development price e-commerce websites on the market.”