Figs Inc

VF Corp reported second-quarter revenues of $1.67 billion, up 1.3% year on year and 2% above analysts' expectations, but the owner of The North Face, Vans, and Supreme missed analysts' EPS estimates significantly, sending its stock down 22.5% since reporting to a current price of $14.15. The results came as the 15 consumer discretionary apparel and accessories stocks tracked in the group delivered a mixed quarter, with revenues as a group beating consensus by 1.2% while next quarter's revenue guidance came in 4.7% below estimates, and share prices across the group down an average of 17.1% since the latest earnings results. Figs posted the group's best quarter, with revenues of $196.6 million, up 28.8% year on year and 5.6% above expectations, alongside beats on EPS and EBITDA, lifting its stock 18.2% to $13.29. Stitch Fix had the weakest quarter, reporting revenues of $324.4 million, up 4.2% and in line with expectations, but delivering the group's weakest guidance update with full-year EBITDA guidance missing significantly, leaving its stock down 23.8% at $2.17. Movado reported revenues of $169.8 million, up 4.9% and 3.4% above expectations, with a beat on EPS, while Levi's posted revenues of $1.56 billion, up 8% and 2.9% above expectations, with an EPS beat but full-year EPS guidance slightly missing, and its stock is down 19.2% at $19.69.

FIGS, Inc. reported that its international revenue surged 67% year over year to $37.9 million in the second quarter of 2026, accelerating from 49.9% growth in the first quarter. International sales now account for approximately 19% of total revenues, with existing comparable markets contributing more than 50 percentage points to the growth. Management highlighted exceptional performance in Europe, Latin America, and Mexico, along with improvements in Canada, Australia, and the Middle East. The company expanded its reach to 85 international markets by July 2026, adding 27 markets since year-end 2025, and its institutional business is extending overseas, including a recent partnership with Bupa Dental Care to outfit nearly 400 dental centers in the United Kingdom. Following the strong quarter, FIGS raised its 2026 revenue growth expectation to approximately 20%, up from a prior range of 14% to 16%.

Oxford Industries will report its quarterly earnings after market close on Thursday, with analysts expecting revenue to decline 2.1% year on year, an improvement from the 4% drop in the same quarter last year. The fashion conglomerate met revenue expectations last quarter with $391.4 million in revenue, flat year on year, though full-year guidance slightly missed estimates. Analysts have generally reconfirmed their forecasts over the past month, and the stock trades at $37.98 against an average price target of $40. Peers Figs and Movado have already reported strong results, with Figs beating expectations by 5.6% and Movado by 3.4%, while the broader apparel and accessories group has underperformed, with shares down 7.2% on average over the last month.

FIGS shares have surged 25% over the past three months following another quarter of accelerating sales and improving profitability. Second-quarter 2026 net revenues rose 28.8% year over year to $196.6 million, marking a third consecutive quarter of more than 25% growth, with scrubwear up 27%, non-scrubwear up 40%, U.S. revenues up 22%, and international revenues up 67%. Active customers increased 13% to 3.1 million, average order value rose 9% to a record $127, and trailing 12-month net revenues per active customer reached a record $229, up 10% year over year. Adjusted EBITDA margin expanded to 18.6% from 12.9% a year earlier, supported by expense leverage, pricing, higher full-price selling, and lower return rates. The company raised its full-year 2026 revenue-growth outlook to approximately 20% from 14% to 16%, but faces tougher comparisons ahead, including lapping 33% growth in the fourth quarter and managing a U.S. Customs and Border Protection order blocking imports from a manufacturing partner in Jordan. The stock trades at 46.35 times forward 12-month earnings versus 15.28 times for its industry, leaving less room for a slowdown.

Figs stock climbed for a fourth straight day after the company reported second-quarter earnings that crushed Wall Street forecasts. The scrubs supplier posted a 300% year-over-year increase in GAAP net profit and saw its stock surge nearly 27% on earnings day. Barclays analyst Adrienne Yih and KeyBanc analyst Ashley Owens both raised their price targets to $20 per share, implying a potential 36% upside from current levels. Figs generated $97 million in free cash flow over the past twelve months, and the stock trades at an enterprise value-to-free cash flow ratio of 22 times, which some investors consider cheap given its growth rate.

FIGS is turning healthcare apparel into a broader investment story, with net revenues rising 28% year over year to $159.9 million and active customers surpassing 3 million for the first time. Scrubwear grew 27% and accounted for 79% of net revenues, while non-scrubwear grew 31% and represented 21% of net revenues, reflecting a strategy to build a broader healthcare wardrobe around layering, fit, fabrics, and use cases. The company is also testing omnichannel growth through Community Hubs, where roughly 40% of visitors are new to the brand, and through TEAMS, which serves hospitals and healthcare organizations. International net revenues reached $28.3 million, up 49.9% year over year, with operations now in 85 markets versus 32 at the end of 2024, though tariffs and supply-chain costs limited gross margin improvement to just 10 basis points at 67.7%. The stock carries a Zacks Rank of 3, or Hold, with a Momentum Score of A and a Value Score of D.