Online marketplace operator Etsy reported gross merchandise sales of $3 billion for the third quarter, up 1.2 per cent year on year.

On a currency-neutral basis, however, sales were largely flat, attributable to a dynamic macroeconomic environment that impacted consumer discretionary spending.

“While we are undoubtedly operating in a challenging environment for spending on consumer discretionary items, we believe that we are at least holding our share gains in our top categories,” said Josh Silverman, CEO of Etsy.

The company’s consolidated revenue rose 7 per cent to $636.3 million, driven by growth in Etsy Ads, payments revenue and transaction fee revenue from offsite ads. Net income was $87.9 million, up $1.1 billion year on year.

Neil Saunders, MD of GlobalData, said the results are slightly better after a period of softness.

“While this represents progress of a sort, it is a very modest advance rather than a signal that Etsy is on the verge of regaining all the ground it has lost since the pandemic-induced boom.”

Etsy reported a net income of $87.9 million – a marked contrast from the $963 million loss last year when it wrote down the value of Depop and the now-sold Elo7 business, Saunders added.

The company expects fourth-quarter gross merchandise sales to decline in the low-single-digit range.