Online marketplace Etsy named insider Kruti Patel Goyal as its new chief executive officer on Wednesday, succeeding Josh Silverman, who has spent over eight years in the role.

Etsy’s shares, which have gained about 40% so far this year, were down nearly 7% in early trading, after the company also forecast muted gross merchandise sales (GMS) – a key metric – for the fourth quarter.

A long-time Etsy executive, Patel Goyal, will take the helm on January 1, at a time when online retailers and marketplaces have been facing the brunt of hefty U.S. tariffs on imports, especially those from China and Vietnam – two major suppliers of products including clothes, shoes and toys.

Patel Goyal, currently president and chief growth officer, has led fashion reseller Depop, which Etsy bought for $1.63 billion in 2021, for nearly three years.

Silverman will take over from Fred Wilson as executive chair and will remain in the role until December 31, 2026.

The removal of “de minimis” – the duty-free treatment of e-commerce packages worth less than $800 – for products originating from China and Hong Kong, has also sparked worry.

“On the tariff and trade lane front, we experienced some pressure on our U.S. import trade route during the quarter,” Etsy CFO Lanny Baker said in a call with investors.

The company expects GMS for the current quarter to range between $3.50 billion to $3.65 billion, down from $3.74 billion last year.
The forecast for the fourth quarter could be disappointing, as investor expectations were higher, JPMorgan analysts said in a note.

For the third quarter, Etsy posted GMS of $2.72 billion, down from last year’s $2.92 billion and a market estimate of $2.76 billion, per three analysts from LSEG.

However, it posted revenue of $678 million for the quarter, beating analysts’ expectations of $655.3 million.