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Mar 31, 2022
FIGS Q1 2022 Earnings Report
Reported a revenue increase driven by higher average order values and strength in lifestyle products, but faced challenges due to increased operating expenses and supply chain issues.
Key Takeaways
FIGS reported a 26.4% increase in net revenues to $110.1 million in Q1 2022. However, the company faced challenges with gross margin decreasing by 40 basis points and operating expenses increasing by 39.7%. Net income was $8.9 million, and diluted earnings per share was $0.05.
Net revenues increased by 26.4% year-over-year to $110.1 million.
Gross margin decreased by 40 basis points year-over-year to 71.2%.
Operating expenses increased by 39.7% year-over-year to $64.7 million.
Net income was $8.9 million and diluted earnings per share was $0.05.
Forward Guidance
FIGS expects net revenues to be in the range of $510 to $530 million, representing year-over-year growth of approximately 22% to 26%. Gross margin is expected to be in the range of 67% to 68%, and adjusted EBITDA margin is expected to be in the range of 16% to 18%.
Positive Outlook
- Net revenues are expected to grow approximately 22% to 26% year-over-year.
- Company is focused on balancing continued investment.
- Company aims to mitigate supply chain challenges.
- Company is focused on near-term impact on gross margin.
- Gross margin is expected to be in the range of 67% to 68%.
Challenges Ahead
- Supply chain challenges are impacting the outlook.
- Broader macroeconomic factors, including high inflation, are affecting the outlook.
- Shifts in consumer spending patterns are impacting the outlook.
- Gross margin is expected to be lower than previously anticipated due to increased use of air freight.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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