Q2 2024 Figs Inc Earnings Call Transcript
Key Points
- FIGS Inc (FIGS) reported solid second quarter results with revenue growth at the high end of their expected range and adjusted EBITDA margin above expectations.
- The company's US growth returned to positive territory, driven by improved repeat frequency trends.
- International growth accelerated, with a record quarter showing year-on-year revenue growth of 32%.
- FIGS Inc (FIGS) launched a successful Olympics marketing campaign, which has been their most significant to date, driving engagement and brand visibility.
- The company maintains a strong balance sheet with over $268 million in cash and no debt, providing financial flexibility for future growth.
- Gross margin for the second quarter decreased to 67.4% from 69.5% in the same period last year, primarily due to product category mix shifts.
- Average order value decreased by 1.7% to $113, and net revenues per active customer decreased by 2.3%, impacted by accounting reclassifications related to duty subsidies for international customers.
- The company anticipates full-year gross margin to be 150 to 200 basis points lower than the previous year due to a shift in product mix.
- Selling expenses increased as a percentage of net revenues due to transitional costs associated with the new fulfillment center.
- Despite positive trends, there is still uncertainty in the macroeconomic environment, affecting consumer purchasing behavior.
Good afternoon. Thank you for joining todayâs FIGS second quarter and Fiscal 2024 earnings conference call. My name is Cole, and Iâll be the moderator for todayâs call. (Operator Instructions) Iâd now like to pass the call over to Todd Maron. Please go ahead.
Thank you. Good afternoon and thank you for joining todayâs call to discuss FIGS second quarter 2024 results, which we released this afternoon and can be found in our earnings press release and in the stockholder presentation posted to our Investor Relations website at ir.wearfigs.com. Presenting on todayâs call are Trina Spear, our Co-Founder and CEO; and Kevin Fosty, our Interim CFO.
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 uncertainties and actual results could differ materially. These and other risks
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