Figs hits 2-month low on lower Q4 profit, weaker revenue forecast

Figs

01/03/2023 17:25

** Shares of apparel retailer Figs Inc  FIGS.N  fall as much as 27.3% to
two-month low of $6.70 
    ** Stock on course for worst day since May 2022
    ** Co after markets on Tuesday reported a fall in Q4 profit, hurt by higher
promotional sales and product mix shift as well as higher ocean freight costs
    ** FIGS net income falls to about $3.4 mln, or $0.02/shr, compared with
$12.6 mln, or $0.08/shr a year earlier 
    ** Co expects 2023 net revenues to grow in mid-single digit vs analysts'
estimate of about 8% growth - Refinitiv
    ** "2023 guide embeds heavy dose of macro headwinds and transitory margin
pressure," says brokerage Raymond James 
    ** "We expect growth driven by investments in customer acquisition, but see
medium-term challenges due to macro challenges and weaker sales outlook" - BofA
    ** Co beat quarterly estimates for revenue and adjusted profit 
    ** FIGS shares have fallen nearly 53% in the past 12 months

 (Reporting by Granth Vanaik in Bengaluru)
 ((Granth.Vanaik@thomsonreuters.com; Twitter: https://twitter.com/Vanaik_Granth))