How did FIGS manage expenses to boost Q4 2024 revenue growth?

FIGS managed expenses effectively to boost Q4 2024 revenue growth through a combination of strategies that focused on optimizing operational costs and maintaining profitability. Here are the key points to consider:

1. **Cost Management Efforts**: FIGS implemented measures to control operating expenses, which increased by 11.6% year-over-year, primarily due to higher operational costs at their new fulfillment center and higher shipping costs. Despite these increases, the company was able to maintain a competitive edge in the market.
2. **Gross Margin Optimization**: FIGS focused on optimizing its gross margin, which decreased by 20 basis points year-over-year, primarily due to product mix shifts. The company partially offset this decline by benefiting from duty drawback claims, indicating strategic planning and operational efficiency.
3. **Adjusted EBITDA Margin Improvement**: FIGS improved its Adjusted EBITDA margin to 9.3%, up from the previous year's 7.9%. This improvement reflects enhanced operational efficiency and cost management, which directly contributed to the company's bottom line and supported revenue growth.
4. **Share Repurchase Authorization Increase**: FIGS increased its share repurchase authorization by $50 million, demonstrating confidence in its financial stability and potential for future growth. This move not only enhances shareholder value but also signals the company's commitment to managing expenses effectively to drive revenue growth.

In conclusion, FIGS's strategic approach to cost management, coupled with its focus on optimizing gross margin and improving operational efficiency, significantly boosted its revenue growth in Q4 2024. The company's ability to navigate operational challenges while maintaining profitability is a testament to its strong financial acumen and strategic planning.