Benzinga - Online marketplace company Etsy Inc (NASDAQ: ETSY) has a new product launch it's announcing a week after reporting quarterly financial results. The new product could be a natural fit for the company and comes as one retailer in the sector is struggling.
What Happened: Etsy reported first-quarter revenue that was up over 10% year-over-year and beat analysts’ estimates. The company said during the earnings report that it had “an exciting pipeline of product development,” which investors may now understand better.
The company announced the launch of its wedding registry business on Wednesday.
“As the wedding gift-giving industry evolves and more people shop with intention, Etsy is thrilled to announce Etsy Registry, our new wedding registry experience that allows couples to register for truly meaningful gifts – often personalized or one-of-a-kind,” the company said.
The company added that it has seen an 872% increase in searches on its website for handmade gifts, indicating more wedding guests looking for more customized and personalized gifts.
Wedding registries on Etsy can include handmade and vintage items and personalized items. Couples can even pick specific customization for their guests for the items they are requesting.
Etsy also announced it partnered with Antoni Porowski, from the Netflix hit show “Queer Eye,” and former “Shark Tank” co-host Kevin Harrington, who created their Etsy wishlist and wedding gift registry.
“One of the best parts about registering with Etsy is that you can choose custom, personalized gifts that never feel cookie cutter,” Porowski said.
Etsy also released a wedding trend guide for 2023 that highlights a variety of items for weddings that have risen in popularity. Among the trending items listed were lovecore, oversized florals, western weddings, love story gifts, wedding rings with character, statement accessories and creative wedding programs.
Related Link: Best Wedding Loans
Why It’s Important: The wedding market is a big one and could be a promising opportunity for a company like Etsy. The move also comes in the wake of retailer Bed Bath & Beyond (OTC: BBBYQ) facing liquidity struggles and store closures.
A 2022 study from Baird saw Bed Bath & Beyond falling in the market share for wedding registries. The overall market share for wedding registries in the report, as highlighted by CNBC was:
1. Amazon.com Inc (NASDAQ: AMZN): 45% market share
2. Bed Bath & Beyond: 30%
3. Target (NYSE: TGT): 26%
4. Cash/Travel: 16%
5. Crate & Barrel: 15%
6. Williams & Sonoma (NYSE: WSM): 15%
Bed Bath & Beyond saw its share fall from 44% in 2017 to 30% in 2022 and could open more opportunities for companies to swoop in and take its customers, as two retailers recently took steps to take advantage of Bed Bath & Beyond’s recent struggles.
Amazon reversed course, gaining from a market share of 20% in 2017 to leading the way at 45% in 2022.
A recent report from the wedding site The Knot said that 84% of those surveyed had set up a wedding registry for their big day. In 2022, a record 2.6 million couples were married, likely a result of pent-up demand after the COVID-19 pandemic saw cancellations or delays of weddings.
The announcement by Etsy comes as the company’s guidance disappointed investors and the company saw a short report issued earlier this year.
ETSY Price Action: Etsy shares are up 2% to $94.40 on Wednesday, versus a 52-week trading range of $67.06 to $149.91.
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