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In a challenging market environment, FIGS Inc., a direct-to-consumer healthcare apparel and lifestyle brand with a market capitalization of $667 million, has seen its stock price touch a 52-week low of $4.17. According to InvestingPro analysis, the company maintains strong financial health with a current ratio of 4.25 and more cash than debt on its balance sheet. This latest price level reflects a significant downturn from the company’s previous performance, marking a stark contrast to the investor enthusiasm it once enjoyed. Despite the challenging environment, FIGS maintains impressive gross profit margins of 67.61%, and management has been actively buying back shares. Over the past year, FIGS has experienced a notable decline, with its stock value decreasing by 12.66%. This downturn can be attributed to a variety of factors, including shifts in market sentiment, competitive pressures, and broader economic trends that have impacted the performance of many growth-oriented stocks in the healthcare sector. InvestingPro subscribers have access to 12 additional key insights and a comprehensive Pro Research Report that could help evaluate FIGS’s investment potential.
In other recent news, FIGS, Inc. reported its fourth-quarter 2024 earnings, revealing a revenue of $151.8 million, surpassing analyst expectations of $139.49 million. Despite this revenue beat, the company’s earnings per share (EPS) fell short, coming in at $0.01 against a forecast of $0.03. Additionally, FIGS announced that Jerry Jao will join its board of directors, bringing expertise in marketing, technology, and finance, effective April 1, 2025. This appointment is expected to bolster the company’s strategic direction as Jao assumes roles including Chair of the Audit Committee.
In terms of strategic initiatives, FIGS is expanding its international footprint by entering markets in Japan and South Korea, while also launching new product innovations such as the Formax fabric. The company is focusing on reducing promotional activities and maintaining gross margins at 67.6% for 2025. Furthermore, analyst feedback from firms like Goldman Sachs and Oppenheimer noted the company’s shift in promotional strategy and its potential impact on sales.
Finally, FIGS ended the year with a strong financial position, holding cash and investments totaling $245.1 million, and inventory levels down 35% from peak levels. The company’s outlook for 2025 anticipates a low single-digit decline in net revenues, with a focus on international expansion and retail channel development.
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