FIGS (FIGS) Stock Forecast & Price Target

FIGS Inc has demonstrated a notable improvement in its operating margin, projected to expand by 930 basis points to 3.1%, compared to a loss of 6.2% in the previous year, indicating a shift toward profitability. The company also reported a 5.8% year-over-year increase in Q2 sales, reaching $152.6 million, significantly surpassing consensus expectations, which reflects strong demand for its products. Additionally, active customers grew by 4.1% year-over-year, reaching a total of 2.736 million, showcasing the company’s successful customer engagement strategies and potential for sustained revenue growth.

FIGS Inc is facing a negative financial outlook as it anticipates a significant decline in Q4 EBITDA margin due to rising tariff pressures and increased marketing expenses related to the upcoming winter Olympics. The company is also projecting a modest decrease in gross margin, expected to decline 50 basis points to 66.6%, while the US segment, which represents 84% of total sales, has seen a slight drop in sales contribution compared to the previous year. Additionally, the decrease in orders per active customer, falling to 0.48 from 0.49, indicates potential challenges in customer engagement and demand.