• Revenue growth outlook: Constant currency growth was largely flat in Q1 after excluding currency tailwinds and US tariff refunds, but the company expects mid-single digit constant currency growth across the rest of the year.
• Platform migration savings: Leveraging AI, the migration of all four brands to Shopify Enterprise was completed in 6 to 8 months for $600,000 to $700,000, enabling faster tech integrations after delivering 21% digital growth in Q1.
• Gross margin expansion: Excluding tariff refunds, gross margins reached 67% compared to 63% to 64% in the prior-year period, driven primarily by better sourcing and an increasing mix of higher-margin digital sales.
• Macro demand trends: Discretionary demand in key Western markets was pressured by elevated gas prices stemming from Middle East tensions, though moderating fuel costs and digital channel expansion are expected to offset headwinds.