FIGS Inc. · Q3 2024 earnings

Briefing

FIGS' Q3 2024 financial results were released, featuring a decrease in net revenues and gross margin, alongside an increase in operating expenses, and the completion of a state-of-the-art fulfillment center transition.

FIGS reported a slight decrease in net revenues, a reduction in gross margin, and an increase in operating expenses for Q3 2024. The company highlighted key investments, including an Olympics campaign and the transition to a new fulfillment center, while also noting challenges related to footwear inventory, promotional timing, and fulfillment center ramp-up costs. They also announced a minority investment in OOG, Inc.

• Net revenues decreased by 1.5% year over year to $140.2 million, influenced by a drop in average order value.
• Gross margin declined by 1.3% year over year to 67.1%, attributed to higher discounted sales and product mix shift.
• Operating expenses increased by 17.4% year over year to $102.7 million, driven by higher marketing and selling expenses.
• The company invested $25.0 million in OOG, Inc., an AI-powered education platform for healthcare professionals.

Headline financials

Revenue & EPS history

For the full year 2024, FIGS expects net revenues to be down 1% to flat compared to 2023, and adjusted EBITDA margin to be approximately 8%.