The insight: Etsy’s confidence in its ability to weather tariff uncertainty and declining consumer confidence was buoyed by a solid Q1 performance.

• Revenues rose 0.8% YoY to $651.12 million, beating FactSet’s $642 million consensus.
• Excluding the impact of the sale of its Reverb marketplace, per-share earnings (EPS) were $1.03, ahead of the 49 cents expected.
• Gross merchandise sales across Etsy and Depop fell 6.5% YoY, in line with estimates.

Etsy’s window of opportunity: Unlike most of its ecommerce peers, Etsy is considerably less exposed to products from China, protecting it from the worst of the current tariffs. About half of Etsy’s GMS comes from domestic sellers catering to US buyers, helping to shield it from tariff-related pricing pressures. That also gives it a potential advantage as competitors raise prices to offset higher costs.