Healthcare apparel company Figs (NYSE: FIGS) announced better-than-expected revenue in Q2 CY2026, with sales up 28.8% year on year to $196.6 million. Its non-GAAP profit of $0.11 per share was 66.9% above analysts’ consensus estimates.

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

StockStory’s Take

Figs’ second quarter saw robust momentum, with management attributing the positive results to broad-based growth across product categories, channels, and geographies. CEO Trina Spear highlighted that active customer growth, record average order value, and expanding market share were key contributors. The company’s ability to drive both new and returning customer engagement, supported by successful marketing campaigns and replenishment-driven purchasing, helped underpin net revenues per active customer reaching an all-time high. Management also credited improved full-price selling, lower return rates, and operational efficiencies for the substantial margin expansion achieved during the period.

Looking ahead, management believes continued investment in product development, international expansion, and brand awareness campaigns will drive growth for the remainder of the year. CFO Sarah Oughtred noted that pricing actions and strong customer engagement trends are expected to support elevated average order values, while ongoing supply chain adaptations should help mitigate external disruptions. While the company anticipates using airfreight to compensate for sourcing challenges, Oughtred stated that “active customer growth will continue at a strong rate for the rest of the year,” signaling confidence in the sustainability of recent gains and the ability to absorb cost fluctuations.

Key Insights from Management’s Remarks

Management attributed the quarter’s strong performance to high demand for both core and new product offerings, geographic expansion, and effective customer engagement strategies.

• Core product and new launches: Figs saw record scrubwear sales, supported by new style and color introductions, such as wider leg scrub pants and limited-edition color drops tied to cultural moments and collaborations like Star Wars and Spider-Man.
• International and channel expansion: International net revenues grew 67%, driven by both existing and 27 newly entered markets. Management emphasized localized marketing and ambassador programs in high-potential regions such as Japan, South Korea, and China.
• Non-scrubwear growth: The layering system—including underscrubs, outerwear, and accessories—grew 40% year over year. Non-scrubwear now accounts for nearly 20% of business, with accessories further boosted by the acquisition of jewelry and pins brand V Coterie.
• Customer engagement and frequency: Improved repeat purchase rates and customer frequency reflected a replenishment-driven model, with returning customers increasing their overall spend and adoption of adjacent categories over time.
• Supply chain resilience: Management detailed proactive measures to address a U.S. import restriction affecting a Jordan-based supplier, including shifting production to other partners and using expedited shipping, which minimized disruption and supported ongoing top and bottom-line growth.

Drivers of Future Performance

Management expects continued momentum from product innovation, international market development, and strong customer retention, while monitoring supply chain and cost headwinds.

• Product pipeline and brand activations: Figs plans to sustain growth through ongoing product innovation—including new fabrics and accessories—and marketing collaborations that drive both awareness and repeat purchases. These initiatives are expected to deepen customer loyalty and boost average order values through personalized offerings.
• International growth strategy: The company is scaling its go-deep and go-broad strategies, with full-funnel marketing and localization in key markets such as Canada, Mexico, and the UK, and expanding ambassador programs elsewhere. Management sees international as the leading growth driver over the next several years.
• Cost and supply chain management: While airfreight and tariff-related costs are expected to pressure margins, management is confident that operational leverage and proactive inventory management will offset these headwinds. Adjusted EBITDA margins are anticipated to remain stable as the company balances growth investments with efficiency gains.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will be watching (1) the pace of international customer adoption and local market performance, (2) execution of new product and collaboration launches that drive higher order values and customer frequency, and (3) the impact of supply chain adaptations and cost controls on margins. Progress in retail store expansion and institutional sales channels will also be closely monitored as indicators of multi-channel growth.

Figs currently trades at $14.24, up from $11.26 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).

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