FIGS (FIGS) Oppenheimer 26th Annual Consumer Growth and E-Commerce Conference summary

Consumer and industry dynamics

• Healthcare professionals, the core customer base, benefit from stable employment and rising wages, making them resilient to broader economic pressures.

• Healthcare remains the fastest-growing job segment, expected to expand over the next decade.

• The industry has demonstrated growth through past recessions, supporting confidence in continued demand.

Sales growth and business performance

• Recent quarters saw significant sales re-acceleration, with 33% growth in Q4 and 28% in Q1, attributed to expanded product assortment and enhanced marketing.

• Growth is broad-based across scrubwear (27%), non-scrub wear (31%), international (50%), and all business channels.

• Trends are expected to continue into Q2, with strong performance and improved P&L leverage.

Profitability and margin outlook

• Adjusted EBITDA margin was 15.7% in 2023, with current guidance at 13%-13.2% due to tariff pressures and business expansion.

• Opportunities exist to scale SG&A, reduce shipping and packaging costs, and leverage G&A as revenue grows.

• Tariff mitigation efforts have included cost reductions and refund submissions, with some refunds already received.

• Guidance assumes ongoing tariffs, but management is confident in continued mitigation and profitability improvement.