FIGS, Inc. FIGS demonstrated improving customer engagement in the first quarter of 2026 as net revenues per active customer increased 6% year over year to $220, the highest level since the fourth quarter of 2022. The improvement reflects the company's success in generating more revenues from each customer through higher spending and increased purchase frequency, underscoring the strength of its premium healthcare apparel brand and direct-to-consumer business model.
The strong performance was driven by gains across all key customer metrics. Active customers grew 12% year over year, surpassing the 3-million mark for the first time in the company's history. At the same time, average order value increased 4% to $124, supported by pricing actions implemented early in the quarter and a favorable product mix. Management also highlighted stronger purchase frequency, noting that customers continued to return to the brand more often, creating a powerful combination of customer growth, higher order frequency and increased spending per transaction.
Management noted that pricing actions on roughly one-third of its product assortment resulted in lower price elasticity than expected, highlighting the strength of the FIGS brand and its value proposition. Premium offerings, including FORMx fabric, FIBREx products and wider-leg pant styles, also contributed to higher average selling prices. Meanwhile, the company reported its second consecutive quarter of double-digit customer acquisition growth, alongside stronger reactivated customers and improved retention, reinforcing confidence that demand remains broad-based and sustainable.
Management remains confident in sustaining this momentum. Following the better-than-expected first-quarter results, FIGS raised its 2026 outlook and expects net revenue growth of 14-16% compared with its prior forecast of 10-12%. The company increased its operating margin and adjusted EBITDA margin guidance, citing continued active customer growth, broad-based demand, rising brand engagement and the resilient fundamentals of the healthcare industry as key drivers of long-term growth.
FIGS’ Price Performance, Valuation & Estimates
Shares of FIGS have surged 71.1% over the past year compared with the industry’s 1.8% growth.
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From a valuation standpoint, FIGS trades at a trailing price-to-sales ratio of 2.93X, above the industry’s average of 1.46X.
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The Zacks Consensus Estimate for FIGS’ 2026 earnings implies year-over-year growth of 36.8%, while the same for 2027 indicates an uptick of 18%. Estimates for 2026 have been unchanged, while those for 2027 have been revised upward by 1 cent over the past 30 days.
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FIGS currently carries a Zacks Rank #2 (Buy).
Other Key Picks
Genesco Inc. GCO is a Nashville-based specialty retailer and branded company. It sells footwear and accessories through retail stores. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings indicates growth of 55.2% from the year-ago actual. GCO delivered a trailing four-quarter average earnings surprise of 3.8%.
Designer Brands Inc. DBI designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. It currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 137.5% and 0.5%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 112.8%.
Tapestry, Inc. TPR is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The company also has a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Tapestry’s current fiscal-year earnings and sales indicates growth of 36.5% and 13.9%, respectively, from the year-ago actuals. TPR delivered a trailing four-quarter average earnings surprise of 15.6%.
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FIGS, Inc. (FIGS): Free Stock Analysis Report
Genesco Inc. (GCO): Free Stock Analysis Report
Tapestry, Inc. (TPR): Free Stock Analysis Report
Designer Brands Inc. (DBI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).