Figs delivered first quarter results that exceeded Wall Street’s expectations for both revenue and profitability, with management highlighting broad-based product strength and continued growth in new and returning customers. However, the market reacted negatively, with concerns centering on customer acquisition dynamics and external cost pressures. CEO Trina Spear cited “accelerating active customer growth” and successful product launches, but also acknowledged headwinds tied to tariffs and rising freight costs.

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

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 From Figs’s Q1 Earnings Call

• Brian Nagel (Oppenheimer) asked if the acceleration in customer growth and top-line momentum reflected any shift in consumer dynamics compared to last quarter. CEO Trina Spear emphasized sustained momentum and broad-based demand, attributing results to core business strength and industry tailwinds.
• Rakesh Patel (Raymond James) probed the breakdown of new versus returning U.S. customers and the sustainability of acquisition trends. CFO Sarah Oughtred highlighted double-digit new customer growth and strong retention, citing both as drivers of active customer gains.
• Adrienne Yih (Barclays) questioned the impact of sourcing from Jordan and Vietnam and whether rising oil prices were affecting product costs. Spear and Oughtred confirmed dual sourcing provides flexibility, and raw material costs are locked for the year, though freight costs are rising.
• Ashley Owens (KeyBanc Capital Markets) asked about the impact of a more measured promotional approach during Nurses Week on Q2 performance. Oughtred indicated the event remains a significant driver, but the company is focused on managing promotional rates and maintaining momentum.
• Joseph Reagor (ROTH Capital Partners) inquired about learnings from recent community hub openings and their contribution to growth. Spear explained that larger store formats and optimized in-store experiences are needed to meet demand, with physical locations exceeding expectations in both customer acquisition and engagement.

Catalysts in Upcoming Quarters

Looking forward, the StockStory team will watch (1) how quickly new international markets begin to contribute meaningfully to overall sales, (2) the impact of additional community hub openings on both new and repeat customer metrics, and (3) the company’s ability to manage gross margin headwinds from tariffs and fuel costs. Execution on product innovation and continued growth in active customers will also be important indicators of future performance.

Figs currently trades at $12.26, down from $15.37 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).

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