Etsy named insider Kruti Goyal as its new chief executive officer on Wednesday, replacing Josh Silverman, and reported weaker-than-expected core sales, hurt by slowing demand.

Shares were down 5% in premarket trading.

Goyal, who is currently the company's president and chief growth officer, will replace Silverman on January 1.

Silverman has spent over eight years at Etsy. He will transition to the role of executive chair until his departure at the end of December. Current chair Fred Wilson will also step down from his role.

Tough competition in the e-retail sector and tight consumer budgets have dented Etsy's sales, as it faces uncertainties arising from the Trump administration's ever-changing tariff policies.

For the third quarter, Etsy posted GMS — a key metric to measure sales — of $2.72 billion, compared with last year's $2.92 billion and market estimate of $2.76 billion.