Private equity buyers are seeing value in the scrubs retailer.Shares of Figs (FIGS -3.85%) jumped this week after the company reportedly received a buyout offer for around $1 billion. In this video, Travis Hoium shows why private equity buyers may be interested and what the stock could do now.*Stock prices used were end-of-day prices of Dec. 11, 2024. The video was published on Dec. 12, 2024. ...

Long-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the competitive dynamics of the industries where they participate, and buying companies that we would like to hold independently of how the price moves in the future. Most QC calls will be holds, and that is by design. Only a very sm ...

For the quarter ended September 2024, Figs (FIGS) reported revenue of $140.21 million, down 1.5% over the same period last year. EPS came in at -$0.01, compared to $0.03 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $144.11 million, representing a surprise of -2.71%. The company delivered an EPS surprise of +50.00%, with the consensus EPS estimate being -$0.02.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ho ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________________ to ___________________ Commission File Number: 001-40448 FIGS, Inc. (Exact Name of Registrant as Specified in its Charter) Dela ...

Thomas Barwick/DigitalVision via Getty Images FIGS (NYSE:FIGS) 2Q24 results were not spectacular, with the company posting moderate growth and improved guidance, but at the expense of lower margins. The company is spending more on product and marketing to drive the top line. My view on the company and the stock has not changed. FIGS has a good product, but its lack of cost management financed by a high gross margin makes it vulnerable to competition from below. The stock discounts a significant improvement ...

Financial Data and Key Metrics Changes - Net revenues increased by 4.4% to $144.2 million compared to Q2 last year, reflecting higher orders from existing customers despite a lower average order value (AOV) [24][25] - Adjusted EBITDA for Q2 was $12.9 million, with an adjusted EBITDA margin of 9%, down from 13.7% in Q2 of 2023 [25][26] - Gross margin for Q2 was 67.4%, compared to 69.5% in Q2 of 2023, primarily due to a shift in product category mix and reclassification of duty subsidies [24][25] Business Line Data and Key Metrics Changes - Non-scrubwear categories grew by 13%, reaching 18% of net revenues, indicating a successful expansion beyond core scrubwear [11][24] - The U.S. growth returned to positive territory, driven by improved repeat frequency trends, while international growth accelerated to 32% year-on-year [13][24] Market Data and Key Metrics Changes - International revenue growth accelerated to 32% from 29% in the first quarter of 2024, despite a negative impact of 12 percentage points from duty subsidies [13][24] - The company reported that branded search for FIGS is now equal to that for scrubs, indicating strong brand recognition [12] Company Strategy and Development Direction - The company is focusing on product innovation and broadening brand reach, particularly through its partnership with Team USA for the Olympics, which is seen as a key strategic driver [5][10] - The company aims to evolve into a lifestyle brand, with new product categories and collaborations expected to enhance long-term growth [11][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth opportunity, despite current macroeconomic uncertainties affecting consumer purchasing behavior [35][36] - The full-year revenue growth outlook has been raised to a range of flat to positive 2%, reflecting strong Q2 performance and visibility into the second half of the year [20][27] Other Important Information - The company has a strong balance sheet with over $268 million in cash and no debt, allowing for strategic investments and a $50 million share repurchase program [22][27] - A new Chief Financial Officer, Sarah Oughtred, has been appointed, bringing extensive experience from lululemon [18] Q&A Session Summary Question: Consumer engagement metrics and trends - Management noted positive trends in repeat frequency driven by product innovation and marketing, but highlighted ongoing uncertainty in the macro environment affecting overall purchasing levels [34][35] Question: Margin levels between core business and new innovations - Management indicated that new products currently have lower margins but expect them to improve as they scale, with core products benefiting from the success of new innovations [36][37] Question: Insights from the Olympic marketing campaign - The campaign has generated significant impressions and engagement, shaping future marketing strategies to focus on top-of-funnel brand building [40][41] Question: Future marketing opportunities and pricing strategy - The Olympic campaign is expected to open doors for future collaborations, and pricing for new products will be strategic to ensure accessibility while capitalizing on demand [46][47] Question: Trends in international markets - International growth was reported at 44%, with strong performance in established markets and significant opportunities in newer markets [56][57]

Core Viewpoint - Figs, a healthcare apparel company, reported disappointing second-quarter earnings, leading to a significant drop in its stock price, indicating ongoing challenges in achieving growth and profitability [1][4]. Financial Performance - Revenue increased by 4.4% to $144.2 million, aligning with estimates [2]. - Gross margin decreased by 210 basis points to 67.4% due to a shift in product mix towards limited-edition items [2]. - Operating expenses rose by 7% to $95 million, driven by higher selling and marketing costs and a transition to a new fulfillment center [2]. - Adjusted EBITDA fell from $18.9 million to $12.9 million, with earnings per share at $0.01, down from $0.04 a year ago and below breakeven estimates [3]. Future Projections - For 2024, Figs projects flat to 2% revenue growth and modest adjusted EBITDA margins of 9.5% to 10% [5]. - The outlook of flat growth while operating at breakeven raises concerns about potential further declines in stock price [5]. Strategic Actions - Figs announced a $50 million share repurchase authorization, indicating a move to support its stock price amidst challenges [3].

Figs (FIGS) reported $144.23 million in revenue for the quarter ended June 2024, representing a year-over-year increase of 4.4%. EPS of $0.01 for the same period compares to $0.02 a year ago. ...

Financial Performance - Net revenues for Q2 2024 were $144.2 million, a 4.4% increase year over year[2] - Net revenues for Q2 2024 reached $144.225 million, a 4% increase from $138.132 million in Q2 2023[14] - Net income was $1.1 million, a decrease of $3.5 million year over year, resulting in a net income margin of 0.8%[2] - Net income for Q2 2024 was $1.100 million, down from $4.582 million in Q2 2023, showing a decline of 76%[14] - Net income for the three months ended June 30, 2024, was $1,100,000, compared to $4,581,000 for the same period in 2023, representing a decrease of approximately 76.0%[16] - Adjusted EBITDA was $12.9 million, down $6.0 million year over year, with an adjusted EBITDA margin of 9.0%[2] - Adjusted EBITDA for the six months ended June 30, 2024, was $25,922,000, compared to $34,973,000 for the same period in 2023, reflecting a decline of about 25.9%[17] - Adjusted EBITDA margin for the three months ended June 30, 2024, was 9.0%, down from 13.7% for the same period in 2023, reflecting a decrease of 4.7 percentage points[17] Operating Expenses - Operating expenses rose to $95.7 million, a 7.0% increase year over year, with operating expenses as a percentage of net revenues increasing to 66.4%[2] - Operating expenses for Q2 2024 totaled $95.711 million, up from $89.468 million in Q2 2023, marking a 7.5% increase[14] Customer Metrics - Active customers increased by 6.1% year over year to 2.6 million[2] - Active customers increased to 2,628 as of June 30, 2024, up from 2,476 as of June 30, 2023, indicating a growth of approximately 6.1%[20] Revenue Per Customer - Net revenues per active customer were $210, a decrease of 2.3% year over year[2] - Net revenues per active customer for the three months ended June 30, 2024, were $210, slightly down from $215 for the same period in 2023[21] Average Order Value - Average order value (AOV) was $113, a decrease of 1.7% year over year[2] - Average order value for the three months ended June 30, 2024, was $113, consistent with $115 for the same period in 2023[22] Balance Sheet - Total current assets increased to $417.240 million as of June 30, 2024, up from $385.659 million at the end of 2023, representing an 8.5% growth[13] - Total liabilities rose to $124.318 million as of June 30, 2024, compared to $96.359 million at the end of 2023, indicating a 29% increase[13] - Cash and cash equivalents decreased to $131.811 million as of June 30, 2024, from $144.173 million at the end of 2023, a decline of 8.6%[15] Shareholder Actions - A share repurchase program for up to $50 million of Class A common stock has been authorized by the Board of Directors[3] Future Outlook - The company expects full-year 2024 net revenues to be flat to 2% growth compared to 2023[5]

FIGS (NYSE:FIGS) is a healthcare apparel retailer famous for its high-quality, trendy scrubs. I started covering the company in March 2024 with a Hold rating. The rating was based on the company's low operating margins, dilutive stock-based compensation, decelerating growth trends, and increasing competition. The company's adjusted EV was too high in comparison with its operating profitability. Management's 'strong' cash flow: The company's management talked about strong and robust cash flow generation seve ...