Figs’ first quarter results were met with a negative market reaction, despite revenues coming in ahead of Wall Street expectations. Management cited a return to growth in the U.S. market, improved average order value, and successful reactivation of lapsed customers as key factors underlying the period’s performance. CEO Trina Spear highlighted, “The start of the year, Q2, repeat frequency is up. U.S. business is up. Scrubwear is up, non-scrubwear is up. We had a record quarter of AOV at $119.” However, executives acknowledged ongoing cost pressures—particularly higher fulfillment and shipping expenses—and a dynamic macro environment as persistent headwinds.

Is now the time to buy FIGS? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Figs’s Q1 Earnings Call

• Matt Koranda (ROTH Capital): Asked about why price increases were not included in the outlook despite tariff headwinds. CFO Sarah Oughtred explained the company is focused on internal cost mitigation and sees price hikes as a last resort due to customer sensitivity.
• Brooke Roach (Goldman Sachs): Inquired whether tariffs and supply chain volatility would impact Figs’ Fit Initiative. CEO Trina Spear confirmed the project remains on track, with no anticipated delays related to trade disruptions.
• Rick Patel (Raymond James): Sought clarity on international growth trends and the impact of fewer promotions on guidance. Oughtred noted healthy demand outside the U.S., with the back half slowdown tied to reduced promotional cadence.
• Dana Telsey (Telsey Group): Asked about inventory planning and the growth trajectory for the B2B TEAMS segment. Oughtred described strategic inventory positioning, while Spear outlined an expanding pipeline and simplified ordering technology for TEAMS.
• Lorraine Hutchinson (Bank of America): Questioned whether competitors are adjusting prices in response to tariffs and if Figs can take share. Spear indicated only small players have raised prices and believes Figs’ scale and supply chain flexibility provide a competitive advantage.

Catalysts in Upcoming Quarters

In the quarters ahead, the StockStory team will be watching (1) how effectively Figs mitigates tariff-related cost increases through supply chain and operational adjustments, (2) the pace and profitability of international and TEAMS business expansion, and (3) traction from new Community Hub retail locations. Execution in these areas will determine whether Figs can sustain growth and defend margins amid ongoing macro uncertainty.

Figs currently trades at $5.91, up from $5.03 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

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