FIGS (FIGS) Stock Forecast & Price Target

FIGS Inc. demonstrated a solid performance with total orders increasing by 6.6% year-over-year, reaching 1.344 million, which highlights the company's robust demand for its healthcare apparel. The growth in the B2B platform TEAMs, which saw an increase of over 20% year-over-year, reflects the company's strategic focus on expanding its customer base and product offerings, potentially driving further revenue growth. Additionally, non-scrub items accounted for 24.5% of total sales in the fourth quarter, an increase from 22.7% in the previous year, indicating a successful diversification of product lines and a positive trend in overall sales composition.

FIGS Inc is experiencing a significant contraction in its operating margins, with an expected decline of 890 basis points to 0.9%, reflecting broad pressure on profitability compared to 9.8% in the previous year. Additionally, the company's adjusted EBITDA margin guidance has been revised downward to approximately 8.0%, well below the previous forecast range of 9.5%-10.0% and a stark decline from 15.8% in FY23. Furthermore, sales projections for FY25 have been reduced to $547 million, indicating weaker growth prospects and potential declines in active customers and increased customer churn due to changes in promotional strategies.