FIGS, Inc. Q1 FY2025 earnings call

• FIGS Q1 revenues up 5% y-o-y, outperforming expectations. AOV reached record level. Reactivations of lapsed customers supported U.S. growth. Adjusted EBITDA margin 7.2% above target. - International opportunity: over 80% of global healthcare professionals but only 15% of net revenue in 2024. Plan to debut in Japan later this year and enter South Korea in H2. - TEAMS business: 15% of scrubs industry driven by institutions; hiring dedicated leader, making outbound orders, investing in tech, marketing, inventory. - Community Hubs: ~40% of customers at locations are new; next hub in Houston at Rice Village near Texas Medical Center. - Mitigating tariffs: focusing on supply chain efficiencies, expense management, and internal strategies while serving healthcare professionals who value affordable and accessible product.

Net revenues increased 5% to $124.9 million. Scrubwear increased 5%, representing 80% of net revenues. Non-scrubwear increased 4%, representing 20% of net revenues. U.S. sales increased 3% to $106 million. International sales increased 16%. AOV increased 3% to $119, a new high, driven by higher full-price sales and product mix.

• Full-year 2025 net revenue outlook unchanged, still in low-single digit decline range. - Adjusted EBITDA margin outlook 7.5% to 8.5%. - Q2 net revenues expected flat. Q2 margin expected above prior year; Q3 and Q4 margin impacted by tariffs, with mitigation efforts on selling and G&A. - Capital allocation to prioritize business investments while preserving balance sheet strength.

• Tariffs creating cost pressure on COGS, with uncertainty around trade policy and how it will flow through P&L. - Supply chain uncertainties affecting inventory costing and timing of tariff impacts.

Q: Matt Koranda asked about tariff mitigation and pricing.

A: Sarah Oughtred mentioned cost mitigation through supply chain efficiencies and expense management; Trina Spear emphasized serving healthcare professionals and internal mitigation strategies.

Q: Brooke Roach asked about Fit Initiative and selling expense optimization.

A: Trina Spear said Fit Initiative on track; Sarah Oughtred discussed scaling fulfillment center and negotiating with vendors.

Q: Rick Patel asked about international performance and U.S. vs international in back half.

A: Sarah Oughtred talked about international growth trends and impact of promo shift; Trina Spear mentioned Australia trip learnings.

Q: Brian Nagel asked about trade issues precedent.

A: Trina Spear referenced COVID experience, flexible supply chain, non-seasonal, replenishment-driven, high-volume low SKU business.

Q: Dana Telsey asked about inventory and B2B growth.

A: Sarah Oughtred discussed inventory growth in Q2 and balancing; Trina Spear talked about TEAMS business opportunities.

Q: Nathan Feather asked about cohort data and reactivation.

A: Sarah Oughtred mentioned marketing and product driving reactivations; Trina Spear noted community love for FIGS.

Q: Lorraine Hutchinson asked about competitor pricing and market share.

A: Trina Spear said using situation to take share, having advantages over competitors.

Q: Unidentified Analyst asked about Asia roadmap and opportunistic investing.

A: Trina Spear said plans in Asia unchanged, continuing to invest in growth levers like international, TEAMS, Community Hubs.