Company Overview - FIGS, Inc. (NYSE: FIGS) specializes in producing and selling scrubs and scrubwear for healthcare professionals, utilizing both online and select retail channels for sales [1] Financial Performance - The company reported a net income of $2.7 million from approximately $550 million in revenue [1]

Financial Data and Key Metrics Changes - Net revenues increased by 6% year-over-year to $152.6 million, exceeding expectations of flat performance for the period [26][27] - Adjusted EBITDA margin improved by 390 basis points year-over-year to 12.9% [10][31] - Net income for the quarter was $7.1 million, or diluted EPS of $0.04, compared to net income of $1.1 million, or diluted EPS of $0.01, last year [31] Business Line Data and Key Metrics Changes - Scrub wear category grew by 8%, representing 83% of net revenues for the period [27][28] - Non-scrub wear decreased by 3%, representing 17% of net revenues, impacted by a pullback in promotional strategy [28] - Average Order Value (AOV) increased by 4% to $117, driven by higher average unit retail due to product mix and lower return rates [27][44] Market Data and Key Metrics Changes - U.S. sales increased by 4% to $129.9 million, marking the strongest performance in nearly two years [29] - International net revenues increased by 20%, with strong growth in new and existing customers [29] - Active customers increased by 4% year-over-year to 2.7 million [27] Company Strategy and Development Direction - The company is focusing on serving healthcare professionals and enhancing brand differentiation through impactful marketing and product innovation [12][19] - Strategic repositioning away from broader promotional periods aims to drive productivity and intentionality in business operations [6][11] - Expansion into international markets, including recent launches in Japan and planned entry into South Korea, is part of the growth strategy [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining momentum despite macroeconomic uncertainties and tariff impacts [10][11] - The outlook for fiscal 2025 has been improved, with net revenues now expected to grow low single digits year-over-year [11][35] - Management emphasized the importance of strategic investments and cost mitigation efforts to navigate the dynamic trade environment [10][11] Other Important Information - The company has a strong balance sheet with net cash and short-term investments of $238.8 million [31] - Inventory increased by 14% year-over-year to $135.5 million, reflecting higher average unit pricing due to product mix and modest tariff impacts [31][32] - The company is prioritizing investments in business growth over share repurchases, with $52 million available for future repurchases [33][90] Q&A Session Summary Question: Impact of AOV and Product Innovation - Management noted that AOV increased due to product mix and returning customers, with product innovation being a key driver [43][44][47] Question: Engagement with Customers and Pricing Strategy - Management highlighted the importance of product and marketing execution, stating that pricing changes will be a last resort after exploring other cost mitigation strategies [52][56][57] Question: Tariff Impact Quantification - Management quantified the tariff impact for 2025 at approximately 150 basis points, with ongoing efforts to mitigate this through sourcing and supplier negotiations [63][64][66] Question: Active Customers and Revenue Guidance - Management indicated that while active customer engagement is strong, the second half of the year will see a larger impact from promotional pullbacks [70][71] Question: Non-Scrub Wear Performance - Management acknowledged softness in non-scrub wear but emphasized long-term growth potential and plans for new product launches [85][86][88] Question: Share Repurchase Strategy - Management confirmed a focus on business growth investments over share repurchases, maintaining a conservative approach given market uncertainties [89][90]

Earnings Presentation D A N I E L L E L . , R N , D N P , A C N P DISCLAIMER Nothing contained in this presentation is, or should be construed as, a recommendation, promise or representation by FIGS, Inc. (the "Company") or any officer, director, employee, agent or advisor of the Company. This presentation does not purport to be all inclusive or to contain all of the information you may desire in connection with your investigation of the Company. Information provided in this presentation speaks only as of t ...

Financial Data and Key Metrics Changes - Consolidated revenue grew more than 9% year over year, with net income per diluted share of $0.10, up from $0.04 in the same quarter last year [7][8][18] - Gross margin remained flat at 38.4% year over year but improved by 160 basis points sequentially [12] - SG&A as a percentage of sales improved to 36.3% from 36.9% in the prior year, despite recognizing $1.8 million in credit loss reserves [13][18] Business Segment Data and Key Metrics Changes - Branded Products segment grew by 14%, driven by order timing and organic expansion with existing accounts [7][12] - Healthcare Apparel segment grew by 6%, supported by volume increases in specific product lines [12][15] - Contact Center business saw a 3% decline in revenues due to macroeconomic headwinds and customer downsizing [12][17] Market Data and Key Metrics Changes - The company noted a full pipeline of contact center opportunities, indicating potential for future growth despite current challenges [5][11] - The Branded Products segment is positioned as one of the top 10 largest providers in a highly fragmented market, suggesting strong competitive positioning [9] Company Strategy and Development Direction - The company is focused on expense management and has launched initiatives to reduce budgeted expenses, which are expected to enhance profitability [6][7] - There is a strategic emphasis on leveraging diverse sourcing and vendor negotiations to mitigate tariff impacts and maintain competitive pricing [6][36] - The company remains open to acquisitions but will be selective, focusing on opportunities that are quickly accretive and do not distract from organic growth [71][72] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the second half of the year, citing mixed results across segments but a strong pipeline of opportunities [30][31] - The company anticipates continued growth in the Branded Products segment and expects the Healthcare Apparel segment to improve as institutional customers replenish inventory [56][60] - Management acknowledged ongoing uncertainties related to inflation, interest rates, and tariffs but emphasized the company's strong liquidity and cost management efforts [19][30] Other Important Information - The company actively repurchased approximately 390,000 shares for about $4 million during the quarter, indicating confidence in its stock value [18] - The company expects full-year revenues to be in the range of $550 million to $575 million, suggesting year-over-year growth at the high end of about 2% [19] Q&A Session Summary Question: Inquiry about SG&A costs - Management clarified that SG&A increased in dollar terms due to higher revenues but improved as a percentage of sales, with credit loss reserves impacting the overall rate [21][22] Question: Opportunities for AI in business - Management discussed the implementation of AI in contact centers for talent acquisition and customer interaction, enhancing efficiency and customer satisfaction [24][25] Question: Impact of tariffs on customer orders - Management noted some customers pulled orders forward due to tariff concerns, but the institutional side showed hesitance in spending [34][39] Question: Outlook for Healthcare Apparel - Management expects the institutional side to pick up as inventory needs arise, with the second half of the year generally being stronger due to seasonal factors [56][60] Question: Contact center pipeline and decision-making - Management indicated that while decision-making has been slow, there is a record pipeline of opportunities that could convert into revenue in the near future [61][64] Question: Mitigation efforts regarding tariffs - Management confirmed that price increases related to tariffs would mostly take effect in the third quarter, with proactive measures taken to protect margins [78][82]

Group 1 - Superior Group of Companies, Inc. will participate in the Inaugural D.A. Davidson Technology & Consumer Conference on June 10, 2025, in Nashville, TN, with investor meetings scheduled throughout the day [1] - The company operates in three business segments: Healthcare Apparel, Branded Products, and Contact Centers, which serve large, fragmented, and growing addressable markets [1] - Superior Group of Companies emphasizes its commitment to service, quality, advanced technology, and omnichannel commerce, providing competitive advantages [1] Group 2 - The company aims to enhance shareholder value through a combination of organic growth and strategic acquisitions [1]