FIGS raised its fiscal 2026 revenue growth outlook to 14%-16% from 10%-12% after first-quarter revenues rose 28% to $159.9 million, and active customers surpassed 3 million for the first time. However, gross margin was 67.7%, up only 10 basis points year over year, and management expects it to decline modestly in the second quarter and more meaningfully in the third quarter. Marketing expense jumped to 18.4% of revenues, and operating cash flow swung to an outflow of $3.2 million from a positive $9.2 million a year earlier. The stock trades at 39.96 times forward earnings, well above the S&P 500's 20.9 times, and has rallied 96.1% over the past year despite a 25% decline in the last three months. Zacks Investment Research rates FIGS a Hold, with a Momentum Score of A but a Value Score of D and a Growth Score of C.
Lululemon Athletica Inc.
Nike IncFigs IncRaised revenue guidance and strong customer growth are positive, but margin pressure, rising marketing costs, negative cash flow, and high valuation create mixed signals.