FIGS (FIGS) Stock Forecast & Price Target

FIGS Inc reported a robust 33% year-over-year sales growth in Q4, demonstrating strong demand driven by over 20% order growth alongside increases in active customers and average order value. The company is projecting a 10%-12% revenue increase for FY26, surpassing prior consensus estimates and building on FY25's impressive 14% growth. With nearly 2.8 million active customers and a successful return to growth in its non-scrubwear segment, FIGS is leveraging strategic initiatives and enhanced inventory offerings, positioning itself for sustained momentum in both the US and international markets.

FIGS Inc is facing a negative outlook primarily due to anticipated gross margin pressure, which is projected to decrease by 250 basis points to 64.8%, surpassing consensus expectations and reflecting broader operational challenges. The company's adjusted EBITDA for the quarter is expected to decline significantly to $13.9 million, down from $21.1 million the previous year, indicating struggles to maintain profitability amid rising costs. Furthermore, external pressures such as increasing tariffs and volatility in consumer spending contribute to an unfavorable financial environment, raising concerns about FIGS's ability to sustain its market position and financial health.