Many companies featured on Money advertise with us. Opinions are our own, but compensation and
in-depth research may determine where and how companies appear. Learn more about how we make money.

Money is not a client of any investment adviser featured on this page. The information provided on this page is for educational purposes only and is not intended as investment advice. Money does not offer advisory services.

Etsy Inc. headquarters in Brooklyn, NY.
Bloomberg— Getty Images

From knit beanies to reclaimed lumber end tables, Etsy sellers had a busy quarter, with the handmade and vintage-goods sales platform beating analyst expectations with revenues of $87.8 million for the fourth quarter of 2015. Year over year, merchandise sales rose by 21%, the company said.

Despite a per-share earnings loss of 4 cents -- versus analyst projections of a 1-cent a share gain -- shares had risen more than 15% by 5:30 ET in after hours trading. This was most likely the result of tempered expectations beforehand, since shares had fallen in advance of Etsy's report. Analysts worried about competition from Amazon's "Handmade", a platform for independent artisans to sell their products that launched last year and bears a lot of similarities to Etsy.

For all its folksy charm, Etsy has had a bumpy ride adjusting to Wall Street's hustle: At market close, shares were still down 11% since the beginning of the year, and has plummeted a whopping 75% since going public last year. It's also lost $54 million over the past year.

Etsy has been looking for ways to bridge the divide between its online sales channel and the brick-and-mortar world. Last year, it launched a function on its app that let vintage and craft lovers find stores and events near them where Etsy sellers were hawking their wares, and earlier this month, it announced a shop at the Macy’s Herald Square in New York City that will feature items from multiple sellers throughout 2016.

Update: This story has been updated to clarify how the Etsy shop at Macy’s will operate.