Naomi Singer of Modern Mud created five exclusive items for The Etsy Shop in Macy's.

Etsy Inc.‘s second-quarter revenues shot up 39 percent, overshadowing slightly steeper net losses and pushing the stock up 5 percent in after-hours trading to $13.38.

The online retailer, known for its crafty offerings, recorded revenue of $85 million, which topped the FactSet forecast of $80 million.

Etsy’s net loss tallied $7.3 million, compared with $6.4 million a year earlier. The losses in the most-recent quarter included a $6.4 million foreign exchange loss and an income tax provision of $4.3 million associated with the building of its new headquarters.

Gross merchandise sales (GMS) were $669.7 million, an increase of 22 percent over last year’s second quarter. Gross profits for the second quarter were $56.3 million, up 42.6 percent year-over-year.

“During the second quarter, we expanded our global community to include approximately 1.7 million active sellers and 26.1 million active buyers,” said Etsy chief executive officer Chad Dickerson. “We accelerated our GMS growth and provided high-impact services to help our creative entrepreneurs start, grow and manage their businesses. This continued focus and discipline led to growth across all of our key metrics, and, as a result, we are raising our financial outlook for 2016.”

Etsy increased its 2016 guidance for GMS to a range of 15 percent to 17 percent growth versus the previous range of 13 percent to 17 percent. Revenue guidance for the year was also increased to a range of 25 percent to 28 percent over the previous guidance of 20 percent to 25 percent.

Recently, Citigroup analyst Mark Kelley initiated coverage with a buy rating and a $14 target price. He wrote, “We view Etsy’s long-term targets as more than achievable, and expect to see upside to consensus numbers as we progress throughout the year and into 2018.” He also called the company the “Pride of Brooklyn.” Etsy is spending $50 million on a new headquarters in Brooklyn.

“We also believe Etsy has built a fairly well-established brand when it comes to creating a marketplace where people can find truly unique items, as evidenced by organic traffic of more than 90 percent,” said Kelley.

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