FIGS (FIGS) Stock Forecast & Price Target

FIGS Inc demonstrated a solid performance with total orders increasing by 6.6% year-over-year to 1.344 million, reflecting robust customer demand. The growth in the B2B platform TEAMs, which expanded over 20% year-over-year, highlights the company's potential for further market penetration and product diversification. Additionally, the surge in international segment sales by 45.2% year-over-year in the fourth quarter indicates a promising trend towards global expansion, enhancing the company's overall revenue outlook.

FIGS Inc. has demonstrated a concerning trend in its financial metrics, with Q4 gross margin contracting 20 basis points year-over-year to 67.3%, which is expected to contribute to a significant decline in operating margins from 9.8% to just 0.9%. Additionally, the guidance for FY25 adjusted EBITDA margin has been revised downward to approximately 8.0%, significantly lower than the previous forecast of 9.5%-10.0% and well below the 15.8% achieved in FY23. Furthermore, the projected FY25 sales are now anticipated to be $547 million, declining from previous estimates and suggesting potential challenges in customer retention and engagement amid a reset of promotional strategies.