-Etsy ( ETSY ) beat Wall Street expectations for second-quarter revenue on Wednesday, helped by strong demand for handcrafted goods and personalized gifts sold at the online marketplace, sending the company's shares up about 3% in premarket trading.

Concerns about inflation, triggered by U.S. President Donald Trump's tariff policies, have pressured consumer spending, but Etsy ( ETSY ) was able to draw in more shoppers as it offers products at a cheaper price, due to the low listing fees it charges sellers.

Etsy ( ETSY ) also remains largely insulated from direct tariff pressures as 90% of the sellers in the company's marketplace source supplies domestically.

The company posted revenue of $672.7 million for the quarter ended June 30, compared with analysts' average expectation of $647.2 million, according to data compiled by LSEG.

However, Etsy ( ETSY ) missed quarterly profit estimates due to a non-cash foreign exchange-related loss. It reported 25 cents per share profit, compared with analysts' estimate of 48 cents.

Its consolidated gross merchandise sales (GMS) - a key metric to measure sales - came in at $2.8 billion, down 4.8% from a year earlier.

In the previous quarter, GMS was down 6.5%.

(Reporting by Anshi Sancheti and Neil J Kanatt in Bengaluru; Editing by Shinjini Ganguli)