FIGSFIGS

The company reported earnings of $0.11 per share, nearly double the $0.07 analysts expected. Total revenue reached about $197 million, a 29 percent increase from a year ago. This growth was led by non-scrub products like footwear and outerwear, which grew 40 percent and show that the brand is successfully selling more than just basic uniforms to its healthcare customers.

Management also raised its financial goals for the full year and added $100 million to its plan to buy back its own shares. Buying back shares is a way for a company to return cash to its owners by reducing the total number of shares available. These results suggest the company is finding ways to grow even as it charges premium prices in a competitive market.

See the full quarter, and how our tracked metrics did

Source: 8-K filing

Key highlights

• International expansion accelerating: Sales outside the United States grew 67.0% to $37.9 million, proving that the brand can travel well beyond its home market and now makes up 19% of total revenue.
• Non scrub categories surging: The company sold 40.3% more lifestyle apparel like jackets and vests than last year, reaching $35.4 million in sales and helping push the average order amount up by 8.5% to $127.
• Efficiency and margins rising: Profit margins on an adjusted basis, which measures what the company keeps after essential costs, jumped to 18.6% from 12.9% last year due to better control over fixed expenses and lower costs for stock awards.
• Customer spending hitting highs: The average amount an active customer spent over the last year rose 10.1% to $229, which management noted is higher than the peak spending levels seen during the pandemic.
• Increased revenue outlook: Management raised its full year expectations and now predicts revenue will grow by approximately 20%, while adjusted profit margins are expected to land between 14.8% and 15.0%.
• Capital return boost: The board authorized an additional $100 million for buying back shares, showing confidence in the company's $108.5 million cash balance and its ability to generate extra money.

Our take: This was an excellent quarter that showed the brand is successfully moving past being just a scrub company. The massive 67.0% jump in international sales and the record spending per customer show the brand has real staying power. It strengthens the case that FIGS can dominate the wider healthcare lifestyle market.