Q2 2025 Figs Inc Earnings Call Transcript
Key Points
- FIGS Inc (FIGS) achieved its largest revenue quarter in history, with net revenues increasing by 6% year over year to $152.6 million.
- The company's scrubwear category posted an 8% gain, marking the highest growth in the past seven quarters.
- Adjusted EBITDA margin improved by 390 basis points year over year to 12.9%, demonstrating effective cost management.
- International net revenues increased by 20%, driven by strong growth in regions like Mexico, Europe, Latin America, and the Middle East.
- FIGS Inc (FIGS) successfully reduced its promotional days, leading to more productivity and intentionality in its business operations.
- The company faces ongoing tariff challenges, with an expected unmitigated tariff impact of approximately 150 basis points for the year.
- Non-scrubwear sales decreased by 3%, impacted by the pullback in promotional strategy and a shift in marketing focus.
- There was softness in the Canadian market, largely due to the impact of reduced promotional activities.
- Inventory levels increased by 14% year over year, partly due to higher average unit pricing and tariff impacts.
- The company anticipates a greater headwind from promotional changes in the second half of the year, which may limit revenue growth.
Good afternoon. Thank you for attending the FIGS second quarter fiscal 2025 earnings conference call. My name is Cameron, and I'll be your moderator for today. (Operator Instructions)
And I would now like to pass the conference over to your host, SVP of Investor Relations, Tom Shaw. You may proceed.
Good afternoon, and thank you for joining us to discuss FIGS' second-quarter 2025 results, which we released this afternoon and can be found in our earnings press release and in the shareholder presentation posted to our Investor Relations website at ir.wearfigs.com. Presenting on today's call are Trina Spear, our Co-Founder and Chief Executive Officer; Sarah Oughtred, our Chief Financial Officer.
As a reminder, remarks on this call that do not concern past events are forward-looking statements. These may include predictions, expectations or estimates, including about future financial performance, market opportunity or business plans. Forward-looking statements involve risks and
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