FIGS (FIGS) Stock Tumbles Over 20% After Slashing Sales Forecast, Credit Suisse Still Bullish as Supply Chain Headwinds are Temporary

May 13, 2022 7:56 AM EDT
Get Alerts FIGS Hot Sheet
Price: $8.90 -1.33%

Rating Summary:
    7 Buy, 4 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 4 | Down: 15 | New: 18
Trade Now! 
Join SI Premium – FREE

Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.

Shares of Figs (NYSE: FIGS) are down nearly 24% in premarket trading Friday after the healthcare apparel brand trimmed its FY 2022 sales growth and issued a weaker-than-expected EBITDA guidance.

Figs reported Q1 net revenue of $110.1 million, missing the consensus estimates of $117.3 million. The company reported an adjusted EPS of 5c, while analysts were expecting 6.2c per share. Adjusted EBITDA stood at $25 million, compared to the consensus projection of $26 million.

Figs expects FY net revenue in the range of $510 million to $530 million, down from its previous forecast of $550 million to $560 million, compared to the analyst expectations of $556.5 million.

The company said it slashed its FY revenue guidance due to supply chain challenges and a wide range of macroeconomic factors such as rising inflation and shifts in consumer spending. Figs also trimmed its FY gross margin guidance as a result of a sharp increase in the use of air freight to help tackle supply chain challenges.

Credit Suisse analyst Michael Binetti cut the price target from $26.00 per share to $15.00. The analyst also reiterated an Outperform rating as FIGS is a “highly differentiated “disruptor” with low market share (~4%) and strong consumer awareness momentum to fuel strong growth for several years despite 2 major supply chain missteps in the last 3 quarters.”

The Outperform rating is based on the belief that “FIGS should still be able to grow profitably for several years once current supply chain headwinds abate."

By Senad Karaahmetovic

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst PT Change, Earnings, Guidance, Hot Earnings, Hot Guidance, Hot List

Related Entities

Credit Suisse, Senad Karaahmetovic