FIGS (FIGS) Stock Forecast & Price Target

FIGS Inc demonstrated strong financial performance, with total sales in the third quarter increasing by 8.2% year-over-year to $151.7 million, surpassing both internal estimates and consensus expectations. Additionally, the company saw a notable increase in active customers, rising 4.0% to 2.781 million, alongside an increase in average order value (AOV) of 5.6%, indicating growing consumer engagement. Furthermore, the positive trajectory in total orders, which rose by 2.5% year-over-year, and the expectation for full-year sales to grow 7.0% to $594.3 million contributes to a favorable outlook for FIGS's stock.

FIGS Inc is facing declining financial metrics that contribute to a negative outlook, including a forecasted EBITDA margin significantly lower than the previous quarter due to increased tariff pressures and heightened marketing expenses for the upcoming winter Olympics. Gross margin is expected to experience a modest decline, with predictions indicating a drop to 64.8%, which surpasses consensus estimates, while the US segment’s contribution to total sales has also decreased slightly year-over-year, reflecting potential challenges in market demand. Additionally, the company reported a decline in orders per active customer and a notable decrease in adjusted EBITDA, further highlighting underlying weaknesses in its financial performance compared to the prior year.