Within direct-to-consumer, we accelerated our shift to digital, step-changing profitability by over 1,000 basis points as we added new connected retail capabilities and drove quality of sales.
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Hey, if there's one thing we've learned over the past 18 months, it's agility and the importance of agility.
And our total social media followers continue to grow, exceeding 46 million globally led by Instagram.
As part of this, in the first quarter, we opened 18 new stores and concessions in priority locations globally, mostly in Asia, and closed 11 locations.
China continues to be a significant long-term growth opportunity, and our ecosystem approach delivered strong growth again this quarter with Mainland sales up more than 50%.
Our global digital ecosystem, including our directly operated sites, department store dot-com, pure players and social commerce, accelerated to more than 80% growth in the first quarter in constant currency, up from about 60% in Q4.
North America drove the biggest improvement this quarter, increasing more than 50% across both owned and wholesale digital channels.
Meanwhile, Europe and Asia momentum continued with growth of more than 100% in each region in Q1, led by our wholesale digital and pure-play channels.
We committed to comprising our global leadership team of at least 20% underrepresented race and ethnic groups by 2023.
As part of our comprehensive circularity strategy, we set a target to use 100% recycled cotton in our products by 2025 and to launch additional resale and recycle opportunities for our consumers by 2022.
We also announced a goal to achieve net-zero greenhouse gas emissions across our operations and supply chain by 2040 as we continue to work on reducing our carbon footprint throughout our value chain.
Our teams are executing with passion and continue to embrace the agility they demonstrated throughout the challenging and unpredictable last 18 months.
First quarter revenues increased 182% to last year on a reported basis and 176% in constant currency.
Compared to first quarter fiscal '20 or LLY, revenues declined 4%.
Total digital ecosystem sales accelerated to more than 80% growth in constant currency both to last year and LLY, including 50% growth in our own digital business.
North America delivered the strongest sequential improvement with digital ecosystem sales increasing more than 50%, up from low double digits last year.
Total company adjusted gross margin was 69.8% in the first quarter, down 200 basis points to last year on a reported basis and down 260 basis points in constant currency.
Adjusted gross margins increased 30 basis points to LLY.
First quarter AUR growth grew 17%, marking our 17th consecutive quarter of AUR gains as we continue on our brand elevation journey.
This came on top of 25% growth last year while stores were closed.
Adjusted operating expenses increased 39% driven by higher compensation and rent as we lapped last year's furloughs and store closures during COVID shutdowns.
Adjusted expenses declined 2% compared to LLY.
Compared to first quarter fiscal '20, marketing increased 39% as we focused on digital initiatives and reactivating key brand moments as markets reopened around the world.
We expect to maintain an elevated level of marketing this year at around 6% of sales to support consumer engagement, acquisition and our long-term brand-building initiatives.
Adjusted operating margin for the first quarter was 16.8% compared to a margin loss of negative 35.7% last year and 460 basis points ahead of LLY operating margin.
This was well above our guidance of 7% to 7.5% due to stronger-than-expected replenishment in our wholesale and digital channels, which generate highly accretive margins versus our total company rate.
First quarter revenue increased 300% to last year driven by strong Spring assortments, improving consumer sentiment and expanded store reopenings as we lapped the peak of store lockdowns last spring.
Compared to LLY, North America revenues declined 8%, but included an 18% headwind from our strategic distribution resets and Chaps.
In North America retail, revenues grew 189% to last year.
Comps increased 176% on improved traffic and nearly 40% AUR growth, reflecting our continued elevation around product marketing and more targeted pricing and promotions.
Brick-and-mortar comps increased 278% driven by stronger AUR, basket sizes and traffic as most stores reopened.
Although foreign tourist sales improved significantly to last year, they were still nearly 70% below LLY due to continued softness in international traffic and travel.
Comps in our own digital commerce business grew 51% this quarter, accelerating from 25% in Q4 as we continued to focus on new consumer acquisition, product elevation and enhancing the user experience.
In North America wholesale, revenues increased to $250 million compared to $23 million last year as we carefully restocked into the channel and lapped last year's minimal shipment to customers during the shutdown.
Wholesale AUR growth continues to accelerate, up more than 20% to LLY.
And our focus on Wholesale Dot Com is working with digital sellout up more than 50% in Q1 and more than 75% to LLY.
First quarter revenue increased 194% on a reported basis and 179% in constant currency, above our expectations.
First quarter comps increased at 98% with a 154% increase in brick-and-mortar as stores reopened and a 23% increase in digital commerce.
Approximately 20% of our stores were fully closed in Q1 with additional stores operating under partial closures or other restrictions.
Digital commerce outperformed despite a challenging 44% comparison last year when COVID-related closures shifted more business online.
Revenues increased 68% on a reported basis and 61% in constant currency.
Our Asia retail comps increased 43% driven by similar performance across our brick-and-mortar stores and digital commerce.
In Q1, this was supported by our successful 5/20 gift day campaign, 6/18 shopping event live streamed from our newly opened Sanlitun store and momentum in our newest digital flagships in China, Japan and Hong Kong.
This was led by the Chinese Mainland, which was up more than 50% to last year and 70% to LLY in constant currency driven by a strong product assortment, localized marketing initiatives and new store openings.
Korea was also up more than 30% to last year and 40% to LLY.
We ended the year with $3 billion in cash and investments and $1.6 billion in total debt, which compares to $2.7 billion in cash and investments and $1.9 billion in total debt last year.
Net inventory increased 4% to support increasing demand.
This compared to a 22% decline last year when we limited shipments to brick-and-mortar channels at the height of COVID shutdowns last spring.
For fiscal '22, we now expect constant currency revenues to increase approximately 25% to 30% to last year on a 53-week basis.
Excluding approximately $700 million in annualized revenues, we deliberately reduced during the pandemic, including department store exits, off-price and daigou reductions, Chaps and Club Monaco, this implies revenues up slightly to fiscal '20.
Foreign currency is expected to contribute about 30 basis points to full year revenue growth.
We now expect gross margin to expand 50 to 70 basis points even as we lap meaningful geographic and channel mix benefits due to last year's COVID closures.
This implies roughly 440 basis point increase to fiscal '20.
Our outlook includes slightly higher freight headwinds of approximately 100 to 120 basis points versus our previous expectation of about 100 basis points.
We now expect operating margin of 12% to 12.5%, up from our 11% outlook previously.
This compares to a 4.8% operating margin last year and 10.3% in fiscal '20.
We expect operating margin for the remaining three quarters to moderate from Q1 levels based on increased marketing investments as planned to get to our target of 6% of sales this year, increased freight pressure in the back half of the year and our assumption that the higher-margin wholesale replenishments that we saw in the first quarter does not continue as demand start to normalize.
For the second quarter, which no longer includes Club Monaco, we expect constant currency revenues to increase approximately 20% to 22%.
Foreign currency is expected to contribute about 50 basis points to revenue growth.
We expect operating margin of about 13% to 14% in the second quarter.
This includes gross margin of flat to up 20 basis points as we continue to drive AUR and product mix, largely offset by higher freight as we lap last year's COVID mix benefits.
We expect full year tax rate to be about 24% with the second quarter tax rate about 24% to 25%.

Summary:
China continues to be a significant long-term growth opportunity, and our ecosystem approach delivered strong growth again this quarter with Mainland sales up more than 50%.
Our global digital ecosystem, including our directly operated sites, department store dot-com, pure players and social commerce, accelerated to more than 80% growth in the first quarter in constant currency, up from about 60% in Q4.
North America drove the biggest improvement this quarter, increasing more than 50% across both owned and wholesale digital channels.
We committed to comprising our global leadership team of at least 20% underrepresented race and ethnic groups by 2023.
Compared to first quarter fiscal '20 or LLY, revenues declined 4%.
Total digital ecosystem sales accelerated to more than 80% growth in constant currency both to last year and LLY, including 50% growth in our own digital business.
North America delivered the strongest sequential improvement with digital ecosystem sales increasing more than 50%, up from low double digits last year.
Wholesale AUR growth continues to accelerate, up more than 20% to LLY.
And our focus on Wholesale Dot Com is working with digital sellout up more than 50% in Q1 and more than 75% to LLY.
First quarter revenue increased 194% on a reported basis and 179% in constant currency, above our expectations.
Approximately 20% of our stores were fully closed in Q1 with additional stores operating under partial closures or other restrictions.
Revenues increased 68% on a reported basis and 61% in constant currency.
This was led by the Chinese Mainland, which was up more than 50% to last year and 70% to LLY in constant currency driven by a strong product assortment, localized marketing initiatives and new store openings.
For fiscal '22, we now expect constant currency revenues to increase approximately 25% to 30% to last year on a 53-week basis.
We now expect gross margin to expand 50 to 70 basis points even as we lap meaningful geographic and channel mix benefits due to last year's COVID closures.
We now expect operating margin of 12% to 12.5%, up from our 11% outlook previously.
For the second quarter, which no longer includes Club Monaco, we expect constant currency revenues to increase approximately 20% to 22%.
Foreign currency is expected to contribute about 50 basis points to revenue growth.
This includes gross margin of flat to up 20 basis points as we continue to drive AUR and product mix, largely offset by higher freight as we lap last year's COVID mix benefits.