Shares of Figs Inc FIGS are trading lower into Tuesday’s after-market session following an earnings beat. Here’s what investors need to know.
By The Numbers: Figs reported earnings per share of 5 cents, beating consensus estimates of 1 cent on revenues of $144.9 million, which beat estimates of $135.43 million.
• Shares could be trading lower on the company’s fourth-quarter operating expenses, which came in at $95.6 million, a 29.9% increase year over year. As a percentage of net revenues, operating expenses increased to 66% from 57.2% in the prior year due to higher selling expenses related to fulfillment costs.
• For the full year, Figs said operating expenses were $316.8 million, an increase of 9.1% year over year. As a percentage of net revenues, operating expenses decreased to 62.6% from 69.2% in the prior year period due to lower general and administrative expenses, partially offset by higher selling expenses and marketing investment.
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• For the full year, net revenues were $505.8 million, an increase of 20.6% year over year.
“We delivered fourth-quarter results ahead of our expectations reflecting strong holiday performance as well as growth in our non scrubwear and international businesses,” CEO Tina Spear said in a statement.
Figs said its focus in 2023 is to position the company for long-term growth while maintaining sustainable, profitable margins as it manages 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,” Spear said. “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.”
FIGS Price action: Shares of Figs Inc are trading 12.38% lower to $8.07, according to data from Benzinga Pro.
Photo: T. Schneider via Shutterstock
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