FIGS Earnings Prediction
The chart below shows how FIGS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FIGS sees a +4.01% change in stock price 10 days leading up to the earnings, and a -2.28% change 10 days following the report. On the earnings day itself, the stock moves by +2.10%. This data can give you a slight idea of what to expect for the next quarter's release.
FIGS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
151.83M
4.77%
8.29%
Gross Margin
67.31%
-0.33%
0.37%
Operating Margin
5.86%
-40.33%
-195.28%
Net Margin
1.24%
-82.03%
-202.48%
EPS
0.01
-80.00%
-200.00%
No Data Available
FIGS Earnings Analysis
Figs Inc Corporation (FIGS.N) Earnings Conference Call
Positive
Revenue Growth Momentum: Revenues grew 5% year-over-year, outpacing the implied range for the quarter, indicating positive momentum in the company's strategies.
International Business Growth: International business grew 45% for the quarter, representing 16% of net revenues, marking an all-time high for the brand.
Scrubwear Category Growth: Scrubwear category showed positive growth for the third consecutive quarter, demonstrating resilience in core offerings.
Strong Financial Position: The company ended the year with a strong financial position, reporting approximately $81 million in positive operating cash flow and over $245 million in net cash and investments.
Strong EBITDA Margin Performance: Adjusted EBITDA margins came in above expectations for the period, reflecting effective cost management despite some challenges.
Product Innovation Launch: The company successfully launched new product lines, including the FORMx fabric, which is designed for greater comfort and functionality, indicating a commitment to innovation.
Expansion and Growth Strategy: The opening of new community hubs and expansion into new international markets, including Japan and South Korea, highlights the company's growth strategy and commitment to reaching new customers.
Leadership Team Enhancement: The leadership team has been strengthened with new appointments, which is expected to drive future growth and operational efficiency.
Negative
Revenue Growth Slowdown: Revenues grew only 5% year-over-year, indicating a slowdown in growth compared to previous periods.
Customer Growth and Revenue Decline: Active customer growth was only 3%, with a noted decrease in net revenues per active customer by 1%.
Average Order Value Decline: Average Order Value (AOV) decreased by 1%, reflecting lower units per transaction despite a higher rate of non-promotional sales.
Gross Margin Decline: Gross margin contracted by 150 basis points to 67.6%, primarily due to product mix shifts and higher logistics costs.
Increased Selling Expenses: Selling expenses increased significantly to 25% of net revenues, up from 19.4% in the previous year, due to higher logistics and fulfillment costs.
EBITDA Margin Decline: Adjusted EBITDA margin decreased to 9.3% from 15.8% in the previous year, indicating reduced profitability.
Revenue Decline Forecast: The company expects net revenues for fiscal 2025 to decline in the low single-digit range year-over-year, reflecting headwinds from reduced promotions and potential declines in active customers.
Promotional Strategy Impact: The promotional strategy is expected to negatively impact top-line performance in 2025, as the company plans to be more selective with promotions.
Canadian Expansion Delay: The company is pausing the opening of a Canadian distribution center, which may limit growth opportunities in that region.
Customer Acquisition Challenges: There are ongoing challenges with customer acquisition and retention, with higher churn rates noted among active customers.
FIGS FAQs
How does FIGS typically perform around its earnings report dates?
Is Figs Inc (FIGS) Q4 2024 Earnings Call Summary positive or negative?
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FIGS Earning Call Sentiment
FIGS, Inc. (FIGS) Q4 2024 Earnings Call Transcript
FIGS.N
3.1%Positive
Despite a slight increase in revenues and customer base, the company faces challenges with declining margins, lower EPS, and downbeat guidance for 2025. The Q&A reveals management uncertainty and lack of clear strategy, particularly in customer acquisition and US market growth. The negative sentiment is reinforced by the need to reinvigorate the US business and the shift in promotional strategy without clear metrics. Share repurchases provide some support, but overall, the outlook is negative.
