What To Expect From Figs's (FIGS) Q1 Earnings

Healthcare apparel company Figs (NYSE:FIGS) will be reporting results tomorrow after the bell. Here's what to look for.

Figs missed analysts' revenue expectations by 2.8% last quarter, reporting revenues of $144.9 million, flat year on year. It was a strong quarter for the company, with an impressive beat of analysts' earnings estimates.

Is Figs a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Figs's revenue to decline 2.4% year on year to $117.4 million, a reversal from the 9.2% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at $0 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Figs has missed Wall Street's revenue estimates twice over the last two years.

Looking at Figs's peers in the apparel, accessories and luxury goods segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Kontoor Brands's revenues decreased 5.4% year on year, beating analysts' expectations by 3.8%, and Levi's reported a revenue decline of 7.8%, in line with consensus estimates. Kontoor Brands traded up 5.7% following the results while Levi's was also up 12.3%.

Read our full analysis of Kontoor Brands's results here and Levi's results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the apparel, accessories and luxury goods stocks have fared somewhat better, they have not been spared, with share prices down 2.1% on average over the last month. Figs is down 5% during the same time and is heading into earnings with an average analyst price target of $6.3 (compared to the current share price of $5.1).

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