Etsy has named its president and chief growth officer, Kruti Patel Goyal, as its next chief executive officer, succeeding Josh Silverman from 1 January.

Silverman, who has led the company for more than eight years, will become executive chair through 31 December 2026, while long-standing chair Fred Wilson will step down from his role but remain on the board.

The leadership change was announced alongside third-quarter results. Etsy reported revenue of $678 million, ahead of market expectations, and net income of $75.5 million, or 63 cents per share. Gross merchandise sales were $2.72 billion, down 6.5 per cent year on year.

Shares fell nearly 7 per cent in early trading after the company forecast fourth-quarter gross merchandise sales of $3.50 billion to $3.65 billion, compared with $3.74 billion a year earlier, reflecting tariff pressures and softer core demand. Active buyers declined 5 per cent to 86.6 million, while active sellers fell 10.9 per cent to 5.5 million.

Goyal thanked Silverman and signalled continuity with targeted changes. “I’m honoured and excited to step into the chief executive officer role at Etsy at such a pivotal time. As customer needs continue to evolve, Etsy will, too, but we’ll do it in a way that stays true to who we are,” she said, adding that efforts this year aim “to return our core marketplace to growth, and deliver value to our community and our shareholders.”

Silverman framed the timing as a handover to the next generation. “After more than eight years as Etsy’s chief executive officer, I’ve decided that this is the right time for me to hand over the leadership baton to the next generation… Kruti is fabulously talented, and is the right leader to guide the business forward,” he said.

Etsy highlighted ongoing investments in artificial intelligence to improve search, personalisation and seller tools, including a partnership with OpenAI that enables U.S. users to discover and buy Etsy items within ChatGPT. The company also pointed to headwinds from U.S. tariffs, including the removal of de minimis treatment for low-value imports from China and Hong Kong, which has added friction for some sellers.

Goyal’s appointment follows her tenure as chief product officer at Etsy and as chief executive officer of Depop, the resale marketplace Etsy acquired in 2021 for $1.63 billion. Under her leadership, Depop’s gross merchandise sales and buyer base expanded, with recent figures showing a 39.4 per cent rise in Depop GMS to $292.1 million and strong growth in active buyers and sellers.

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