FIGS (FIGS) Stock Forecast & Price Target

The financial outlook for FIGS Inc appears favorable, as the company is projected to achieve an operating margin expansion of 930 basis points to 3.1%, a significant improvement from the previous year's (6.2%). Additionally, total sales for the third quarter are estimated to increase by 5.8% year-over-year to $152.6 million, surpassing consensus expectations, indicating strong revenue generation capabilities. The growth in active customers, which rose 4.1% year-over-year to 2.736 million, further demonstrates the company's ability to expand its market reach and maintain customer engagement in the competitive healthcare apparel sector.

FIGS Inc is facing anticipated challenges in its Q4 performance, with management signaling a significant decline in EBITDA margins due to increased tariff pressures and heightened marketing expenditures. The company's gross margin is expected to weaken, projected at 66.6%, reflecting 50 basis points of pressure and demonstrating a small decline in gross margins compared to prior expectations. Additionally, the decline in orders per active customer to 0.48 indicates potential weakening customer engagement, which could further impact revenue growth in a market primarily reliant on its U.S. segment.