US' Figs' net revenue grows to $505.8 mn, up 20.6% in FY22

The company’s operating expenses as a percentage of net revenue decreased from 69.2 per cent in the prior year to 62.6 per cent in FY22 due to lower general and administrative expenses.

Figs reported net income of $21.2 million and diluted earnings per share of $0.11, with a net income margin of 4.2 per cent as compared to minus 2.3 per cent in the same period last year. The adjusted net income and earnings per share were $29.2 million and $0.16, respectively, the company said in a press release.

Adjusted EBITDA in FY22 was $87.3 million or 17.2 per cent of net revenues, as compared to $105.2 million or 25.1 per cent of net revenue in the same period last year.

For the fourth quarter (Q4) of FY22, Figs reported a net revenue of $144.9 million, representing a 12.6 per cent YoY increase. However, the company saw a decrease in gross margin by 170 basis points to 68.2 per cent. Operating expenses were $95.6 million, an increase of 29.9 per cent YoY. Furthermore, the company’s net income was $3.4 million and diluted earnings per share was $0.02.

Adjusted EBITDA in Q4 FY22 was $19.8 million or 13.6 per cent of net revenues, as compared to $31.9 million or 24.8 per cent of net revenues in the same period last year.

For FY23, Figs forecasts mid-single digit growth in net revenues, with an adjusted EBITDA margin of 11 per cent to 12 per cent.

“We delivered fourth quarter results ahead of our expectations reflecting strong holiday performance as well as growth in our non scrubwear and international businesses,” said Trina Spear, chief executive officer and co-founder. “Our priorities for 2023 will be positioning our company for long-term growth while maintaining sustainable, profitable margins as we manage through an uncertain macro environment. We remain confident in our long-term outlook as a result of our industry leading product innovation, community connection and advocacy. We believe we have the scale and balance sheet to take our business to the next level, making strategic, disciplined investments in our future as we aim to double our annual net revenues to $1 billion.”

Fibre2Fashion News Desk (DP)