FIGS (FIGS) Stock Forecast & Price Target

FIGS Inc demonstrated a solid performance in its fourth quarter, with total orders increasing by 6.6% year-over-year, reflecting strong demand for its healthcare apparel. The company's international segment showed remarkable growth, surging by 45.2% and contributing 16.0% to total sales, indicating successful market expansion. Additionally, the growth of the TEAMs B2B platform by over 20% year-over-year and a 3.0% increase in active customers to 2.67 million underscore the company’s potential for further growth and increased market penetration.

The financial outlook for FIGS Inc reflects a concerning trend, highlighted by a contraction in gross margin to 67.3% in Q4, coupled with an anticipated significant drop in operating margin to 0.9%, down from 9.8% in the prior year. Additionally, the revised fiscal year 2025 sales forecast is set at $547 million, which is lower than previous estimates and indicates a slowdown relative to last year's sales of $556 million. Furthermore, the adjusted EBITDA margin is projected to decline substantially to approximately 8.0%, which is a significant reduction from the previous guidance of 9.5%-10.0% and well below the prior year's margin of 15.8%, suggesting increasing pressure from operational costs and reduced consumer demand.