FIGS (FIGS) Stock Forecast & Price Target

FIGS Inc demonstrated a positive growth trajectory with total orders increasing by 6.6% year-over-year to 1.344 million, alongside a notable 45.2% year-over-year growth in international segment sales during the fourth quarter. The expansion of non-scrub items to 24.5% of total sales, up from 22.7% in the prior year, reflects the company’s successful diversification strategy, enhancing its revenue streams. Additionally, the B2B platform TEAMs grew over 20% year-over-year, indicating strong demand and future growth potential as management plans to expand its offerings and capabilities.

The financial analysis indicates a concerning outlook for FIGS Inc, primarily driven by a contraction in key profitability metrics. The company experienced a significant reduction in gross margin, declining 20 basis points year-over-year to 67.3%, alongside an expected operating margin contraction of 890 basis points to just 0.9%. Additionally, projected sales for FY25 have been downgraded to $547 million, representing a decrease from both previous estimates and last year's results, suggesting challenges in maintaining revenue growth alongside a predicted rise in customer churn.