FIGS (FIGS) Stock Forecast & Price Target

FIGS Inc. is anticipated to experience significant operating margin expansion, projected to improve by 930 basis points to 3.1%, marking a notable recovery from a prior negative margin. The company reported a year-over-year sales increase of 5.8% in Q2, reaching $152.6 million, which exceeded consensus expectations and indicates strong demand for its product offerings. Additionally, the growth in active customers by 4.1% year-over-year to 2.736 million reinforces the company's expanding market presence and customer base, contributing to an optimistic revenue outlook for FY25 with an expected 7.0% sales increase to $594.3 million.

FIGS Inc's outlook remains negative due to pressures on the company's EBITDA margins, which are expected to decline significantly in Q4 attributed to rising tariff costs and increased marketing expenses. Additionally, the gross margin is anticipated to experience a modest reduction, with projections indicating a drop to 66.6%, which is slightly better than consensus yet still reflects underlying challenges in maintaining profitability. The decrease in orders per active customer, down to 0.48 from 0.49, further indicates a potential weakening in consumer engagement and retention, which could impact future revenue growth.