FIGS (FIGS) Stock Forecast & Price Target

FIGS Inc has demonstrated a positive trend in its financial performance, with total sales increasing by 5.8% year-over-year to $152.6 million, exceeding expectations. The company is also exhibiting an impressive operating margin expansion, projected to rise 930 basis points to 3.1%, compared to a negative margin last year. Additionally, the increase in active customers by 4.1% year-over-year to 2.736 million suggests a growing customer base and potential for sustained revenue growth.

The financial outlook for FIGS Inc appears negative due to expected declines in both EBITDA margins and gross margins, with management indicating a significant decrease in Q4 margins attributed to rising tariff pressures and increased marketing expenditures. Additionally, while total operating expenses showed a year-over-year reduction, the company's gross margin is forecast to modestly decline, contributing to financial pressure. Furthermore, a decrease in orders per active customer indicates declining customer engagement, which may further hinder revenue generation in a market where the U.S. segment accounts for an overwhelming majority of sales.