FIGS, Inc.FIGS

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.