** Shares of online marketplace Etsy ETSY.O up 3% at $47.50 in premarket trading

** Q1 revenue of $651.2 mln tops estimates of $642.7 mln - LSEG

** Consolidated gross merchandise sales down 5.7% on a constant currency basis, marking sequential improvement from a 6.9% drop in Q4 despite fears of slowdown in discretionary spending amid tariff concerns

** Says Q1 core profit margin was stronger than expected as company worked to cut costs

** Co sets up operational task force to provide buyers and sellers with guidance to navigate evolving tariff landscape, including buying locally produced items

** YTD, stock down 12% as of last close

(Reporting by Juveria Tabassum in Bengaluru)

((Juveria.Tabassum@thomsonreuters.com;))