FIGS, Inc. (FIGS) Bundle
A Brief History of FIGS, Inc.
FIGS, Inc. was founded in 2013 by Heather Hasson and Trina Spear with the mission to provide high-quality, stylish scrubs to healthcare professionals. The company quickly gained traction through a direct-to-consumer model that emphasized quality and design.
Financial Performance Overview
As of September 30, 2024, FIGS reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenues | $140.2 million | $142.4 million | (1.5%) |
| Gross Profit | $94.0 million | $97.4 million | (3.5%) |
| Net Income (Loss) | $(1.7) million | $6.1 million | (127.8%) |
| Adjusted EBITDA | $4.8 million | $24.4 million | (80.4%) |
For the nine months ending September 30, 2024, FIGS reported:
| Metric | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|
| Net Revenues | $403.7 million | $400.7 million | 0.7% |
| Gross Profit | $273.4 million | $279.1 million | (2.0%) |
| Net Income | $0.8 million | $12.6 million | (93.7%) |
| Free Cash Flow | $37.1 million | $70.9 million | (47.7%) |
Operating Metrics
As of September 30, 2024, FIGS had approximately 2.7 million active customers, reflecting a 3.8% increase from 2.6 million at the same time in 2023. The average order value (AOV) during Q3 2024 was $108, down from $114 in Q3 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Active Customers | 2.7 million | 2.6 million |
| Average Order Value | $108 | $114 |
Cost Structure and Expenses
FIGS faced rising costs in various operational areas, particularly in selling and marketing expenses:
| Expense Type | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Selling Expenses | $38.6 million | $32.2 million | 19.9% |
| Marketing Expenses | $28.5 million | $19.0 million | 50.1% |
| General and Administrative Expenses | $35.5 million | $36.2 million | (1.9%) |
| Total Operating Expenses | $102.7 million | $87.4 million | 17.4% |
The company’s operational changes included transitioning fulfillment operations to a new facility in Goodyear, Arizona, incurring approximately $2.4 million in capital expenditures during Q3 2024.
Market and Strategic Developments
In August 2024, FIGS authorized a share repurchase program for up to $50 million of its Class A common stock, with $42.7 million remaining available for repurchases as of September 30, 2024. This strategic move aims to enhance shareholder value amidst fluctuating market conditions.
Despite challenges, including a decrease in net income and gross margin due to increased promotional sales and operational costs, FIGS continues to invest in its brand and customer engagement strategies as it positions itself for future growth.
A Who Owns FIGS, Inc. (FIGS)
Ownership Structure
As of September 30, 2024, FIGS, Inc. has two classes of common stock: Class A and Class B. The ownership distribution is as follows:
| Class of Stock | Shares Issued | Voting Rights |
|---|---|---|
| Class A Common Stock | 161,292,723 | 1 vote per share |
| Class B Common Stock | 8,283,641 | 20 votes per share |
Major Shareholders
Key shareholders as of September 30, 2024, include:
| Shareholder | Class of Stock | Shares Held | Percentage of Total Shares |
|---|---|---|---|
| Heather Hasson | Class B | 4,141,407 | 2.5% |
| Trina Spear | Class B | 4,141,407 | 2.5% |
| Other Class B Holders | Class B | Unknown | 2.5% (estimated) |
| Institutional Investors | Class A | 58,000,000 (approx.) | 36.0% |
Recent Developments in Share Ownership
In August 2024, FIGS authorized a share repurchase program for up to $50 million of its Class A common stock. During the three months ended September 30, 2024, FIGS repurchased 1,488,862 shares for approximately $7.3 million .
Stock Performance
As of September 30, 2024, the stock price for FIGS closed at approximately $16 per share. The total market capitalization of FIGS is estimated at $2.58 billion.
Financial Overview
For the nine months ended September 30, 2024, FIGS reported the following financial metrics:
| Financial Metric | Value |
|---|---|
| Net Revenues | $403.7 million |
| Net Income | $835,000 |
| Gross Profit | $273.4 million |
| Operating Expenses | $280.1 million |
| Free Cash Flow | $37.1 million |
Cash and Liquidity Position
As of September 30, 2024, FIGS had $124.1 million in cash and cash equivalents . The company has no outstanding borrowings under its revolving credit facility, which has a capacity of $100 million.
Conclusion of Ownership and Financial Summary
FIGS, Inc. continues to maintain a strong ownership structure, with significant control held by its founders through Class B shares, while institutional investors hold a substantial portion of Class A shares. The company has demonstrated resilience in its financial metrics despite recent challenges, maintaining a solid cash position and strategic initiatives such as the share repurchase program.
FIGS, Inc. (FIGS) Mission Statement
Company Overview
FIGS, Inc. is a direct-to-consumer brand that designs and sells medical scrubs and other healthcare apparel. As of September 30, 2024, FIGS had approximately 2.7 million active customers, reflecting a growth of 3.8% from the previous year.
Financial Performance
For the three months ended September 30, 2024, FIGS reported net revenues of $140.2 million, a decrease of 1.5% compared to $142.4 million in the same period of 2023. For the nine months ended September 30, 2024, net revenues increased by 0.7% to $403.7 million from $400.7 million in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Revenues | $140.2 million | $142.4 million | $403.7 million | $400.7 million |
| Gross Profit | $94.0 million | $97.4 million | $273.4 million | $279.1 million |
| Net Income (Loss) | $(1.7) million | $6.1 million | $0.8 million | $12.6 million |
| Adjusted EBITDA | $4.8 million | $24.4 million | $30.7 million | $59.4 million |
| Active Customers | 2.7 million | 2.6 million | — | — |
Gross Margin and Operating Expenses
For Q3 2024, the gross margin was reported at 67.1%, down from 68.4% in Q3 2023. Operating expenses increased to $102.7 million from $87.4 million in the same period last year, primarily driven by higher selling and marketing expenses.
| Operating Expenses | Q3 2024 | Q3 2023 |
|---|---|---|
| Selling Expenses | $38.6 million | $32.2 million |
| Marketing Expenses | $28.5 million | $19.0 million |
| General and Administrative Expenses | $35.5 million | $36.2 million |
Cash Flow and Liquidity
Cash flows from operating activities decreased to $50.7 million for the nine months ended September 30, 2024, from $80.6 million in 2023. Free cash flow also saw a decline to $37.1 million from $70.9 million during the same period.
| Cash Flow Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Cash Flows from Operating Activities | $50.7 million | $80.6 million |
| Free Cash Flow | $37.1 million | $70.9 million |
Market Position and Strategy
FIGS continues to focus on expanding its product offerings and enhancing its fulfillment capabilities. The company transitioned its fulfillment operations to a new facility in Goodyear, Arizona, which is expected to drive efficiency and support long-term growth.
Recent Developments
In November 2024, FIGS entered into a Series A Preferred Stock Purchase Agreement with OOG, purchasing 27,454,727 shares for $25.0 million, representing a minority interest in OOG.
How FIGS, Inc. (FIGS) Works
Business Model
FIGS, Inc. operates as a direct-to-consumer apparel company, specializing in medical scrubs and related accessories. The company sells its products primarily through its e-commerce platform, focusing on high-quality, stylish, and functional scrubs for healthcare professionals.
Financial Performance Overview
As of September 30, 2024, FIGS reported net revenues of $403.7 million, a slight increase of 0.7% compared to $400.7 million for the same period in 2023. However, for the three months ended September 30, 2024, net revenues decreased by 1.5% to $140.2 million from $142.4 million in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Revenues | $140.2 million | $142.4 million | $403.7 million | $400.7 million |
| Cost of Goods Sold | $46.2 million | $45.0 million | $130.3 million | $121.6 million |
| Gross Profit | $94.0 million | $97.4 million | $273.4 million | $279.1 million |
| Net Income (Loss) | $(1.7) million | $6.1 million | $0.8 million | $12.6 million |
| Adjusted EBITDA | $4.8 million | $24.4 million | $30.7 million | $59.4 million |
Cost of Goods Sold and Gross Margin
The cost of goods sold (COGS) for the nine months ended September 30, 2024, was $130.3 million, representing a 7.1% increase from $121.6 million in 2023. The gross profit margin decreased to 67.7% in 2024 from 69.6% in 2023.
Operating Expenses
Operating expenses totaled $280.1 million for the nine months ended September 30, 2024, an increase of 8.0% compared to $259.3 million in the same period in 2023. Significant increases were noted in marketing expenses, which rose by 20.7% to $68.8 million.
| Operating Expense Type | YTD 2024 | YTD 2023 |
|---|---|---|
| Selling Expenses | $104.0 million | $97.1 million |
| Marketing Expenses | $68.8 million | $57.0 million |
| General and Administrative Expenses | $107.3 million | $105.2 million |
| Total Operating Expenses | $280.1 million | $259.3 million |
Customer Metrics
As of September 30, 2024, FIGS had approximately 2.7 million active customers, an increase of 3.8% from 2.6 million in 2023. The average order value (AOV) for the nine months ended September 30, 2024, was $112, down from $114 in 2023.
| Customer Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Active Customers | 2.7 million | 2.6 million |
| Average Order Value | $108 | $114 |
Liquidity and Capital Resources
As of September 30, 2024, FIGS had cash and cash equivalents of $124.1 million, a decrease from $144.2 million at the end of 2023. The company has a revolving credit facility of $100 million, with $95.1 million available as of September 30, 2024.
Cash Flow Analysis
For the nine months ended September 30, 2024, cash flows from operating activities were $50.7 million, down from $80.6 million in 2023. Free cash flow for the same period was $37.1 million, compared to $70.9 million in 2023.
| Cash Flow Metric | YTD 2024 | YTD 2023 |
|---|---|---|
| Cash Flows from Operating Activities | $50.7 million | $80.6 million |
| Free Cash Flow | $37.1 million | $70.9 million |
Recent Developments
In September 2024, FIGS completed a fulfillment enhancement project, transitioning operations to a new facility in Goodyear, Arizona. This transition involved approximately $2.4 million in capital expenditures. The company also initiated a share repurchase program authorized for up to $50 million of its Class A common stock.
How FIGS, Inc. (FIGS) Makes Money
Revenue Sources
FIGS, Inc. generates its revenue primarily through the sale of healthcare apparel, particularly scrubwear. For the nine months ended September 30, 2024, the company reported net revenues of $403.7 million, slightly up from $400.7 million in the same period in 2023, reflecting a 0.7% increase.
| Period | Net Revenues (in thousands) | Year-over-Year Change (%) |
|---|---|---|
| Q3 2024 | 140,209 | (1.5) |
| 9 Months Ended Sept 30, 2024 | 403,726 | 0.7 |
Product Segmentation
The product mix includes both scrubwear and non-scrubwear items. For the nine months ended September 30, 2024, scrubwear accounted for approximately 81.8% of total net revenues, while non-scrubwear contributed around 18.2%.
| Product Type | 9 Months Revenue (in thousands) | Percentage of Total Revenue (%) |
|---|---|---|
| Scrubwear | 330,459 | 81.8 |
| Non-Scrubwear | 73,267 | 18.2 |
Customer Base and Active Customers
As of September 30, 2024, FIGS had approximately 2.7 million active customers, a 3.8% increase from 2.6 million in the previous year. The company relies heavily on customer retention and repeat purchases.
Average Order Value (AOV)
The average order value (AOV) for the nine months ended September 30, 2024, was $112, a slight decrease from $114 in the same period in 2023.
| Period | Average Order Value ($) |
|---|---|
| 9 Months Ended Sept 30, 2024 | 112 |
| 9 Months Ended Sept 30, 2023 | 114 |
Cost Structure
FIGS's cost of goods sold (COGS) for the nine months ended September 30, 2024, was $130.3 million, representing a 7.1% increase from $121.6 million in the same period of 2023. The gross profit for the same period was $273.4 million, yielding a gross margin of 67.7%.
| Period | Cost of Goods Sold (in thousands) | Gross Profit (in thousands) | Gross Margin (%) |
|---|---|---|---|
| 9 Months Ended Sept 30, 2024 | 130,299 | 273,427 | 67.7 |
| 9 Months Ended Sept 30, 2023 | 121,625 | 279,103 | 69.6 |
Operating Expenses
For the nine months ended September 30, 2024, total operating expenses were $280.1 million, an increase of 8.0% compared to $259.3 million in the same period in 2023. This increase was driven by higher selling and marketing expenses.
| Expense Type | 9 Months Expense (in thousands) | Year-over-Year Change (%) |
|---|---|---|
| Selling | 103,992 | 7.1 |
| Marketing | 68,778 | 20.7 |
| General and Administrative | 107,292 | 2.0 |
Net Income
FIGS reported a net income of $835,000 for the nine months ended September 30, 2024, a significant decrease from $12.6 million in the same period in 2023. The net income margin decreased from 3.1% to 0.2% year-over-year.
| Period | Net Income (in thousands) | Net Income Margin (%) |
|---|---|---|
| 9 Months Ended Sept 30, 2024 | 835 | 0.2 |
| 9 Months Ended Sept 30, 2023 | 12,637 | 3.1 |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, cash flows from operating activities were reported at $50.7 million, down from $80.6 million in the prior year. The free cash flow also decreased significantly from $70.9 million to $37.1 million.
| Period | Cash Flow from Operating Activities (in thousands) | Free Cash Flow (in thousands) |
|---|---|---|
| 9 Months Ended Sept 30, 2024 | 50,746 | 37,088 |
| 9 Months Ended Sept 30, 2023 | 80,647 | 70,914 |
Conclusion on Business Operations
FIGS has diversified its revenue channels through a focus on high-quality healthcare apparel and an expanding customer base. However, challenges in maintaining net income and managing operational costs remain crucial for its future profitability.
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Resources:
- FIGS, Inc. (FIGS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of FIGS, Inc. (FIGS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View FIGS, Inc. (FIGS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.