FIGS (FIGS) Stock Forecast & Price Target

FIGS Inc. demonstrates a strong financial performance with a significant improvement in operating margin, expected to expand by 930 basis points to 3.1%, indicating a notable recovery from a loss of 6.2% in the previous year. Total sales for the third quarter increased by 5.8% year-over-year, reaching $152.6 million, which exceeded the consensus expectations, reflecting robust demand and effective revenue generation strategies. Furthermore, the company anticipates a 7.0% year-over-year growth in total FY25 sales, positioning itself for sustained growth as active customers also rose by 4.1% year-over-year.

FIGS Inc. is facing a challenging financial outlook due to expected declines in EBITDA margins attributed to increased tariff pressures and heightened marketing expenses leading up to the next winter Olympics. The company's gross margin is projected to experience modest pressure, with a decrease to 66.6%, falling short of consensus expectations and indicating potential difficulty in managing costs effectively. Additionally, there has been a decline in orders per active customer, with a drop to 0.48 from 0.49 year-over-year, reflecting weakening customer engagement and potentially impacting future revenue growth.