FIGS Q2 Earnings Call Highlights

FIGS NYSE: FIGS reported second-quarter fiscal 2026 revenue growth of 29% as demand increased across scrub wear, non-scrub apparel, international markets, institutional sales and retail community hubs. The healthcare apparel company also raised its full-year revenue and profitability outlook, despite a new restriction affecting imports from a manufacturing partner in Jordan.

Net revenue rose to $196.6 million from the prior-year period, exceeding the company’s outlook for growth in the low-20% range. CEO and Co-founder Trina Spear said the quarter marked FIGS’ third consecutive period of revenue growth above 25%, its strongest sustained growth stretch since 2021.

Active customers increased 13% year over year to 3.1 million. Average order value rose 9% to a record $127, supported by pricing actions taken earlier in 2026, lower discounting and improved return rates. FIGS also reported higher purchase frequency, helping trailing 12-month net revenue per active customer increase 10% to a company record of $229.

Scrub wear revenue grew 27% and represented 82% of total net revenue during the quarter. Non-scrub wear revenue increased 40% and accounted for 18% of sales, with particular strength in under scrubs and outerwear. Spear said the company is continuing to build a broader “layering system” for healthcare professionals, including lab coats, footwear, compression socks and accessories.

The company also announced it acquired V Coterie, a healthcare-focused maker of pins, jewelry, charms and accessories. Spear said V Coterie founder Lynna Van Mierlo, a former dentist, joined FIGS as part of the transaction. FIGS characterized the acquisition as immaterial from a purchase-price perspective but said the products could support longer-term category growth and customer engagement.

During the quarter, FIGS also launched collaborations and product drops tied to Star Wars and Spider-Man, while its Espresso color release sold out quickly, according to management.

International revenue increased 67% to $37.9 million, while U.S. revenue grew 22% to $158.7 million. FIGS now operates in 85 international markets after opening 27 markets year to date. The company said growth was particularly strong in Europe, Latin America and Mexico, with improved performance in Canada, Australia and the Middle East.

FIGS is increasing localized marketing and brand-building efforts in selected markets, including use of LINE in Japan, Kakao in South Korea and Douyin in China.

FIGS’ teams business, which outfits healthcare organizations, added Bupa Dental Care as a customer. The initial engagement will focus on nearly 400 dental centers in the United Kingdom. Spear said the agreement illustrates the potential reach of the institutional channel.

Community hubs, FIGS’ retail-store format, also produced record results from both comparable-store sales and new locations. The company currently has five stores and has signed four leases for stores expected to open later this year: Fashion Square in Scottsdale, Arizona Tysons Corner outside Washington, D.C. Valley Fair near San Jose, California Aventura Mall in Miami Management said it is also working to secure locations for 2027 and beyond.

Second-quarter gross margin rose 820 basis points year over year to 75.2%. The result included a 780-basis-point cumulative benefit from a $15.4 mi...