FIGS, Inc.'s Q4 2024 Earnings Call: Navigating Contradictions in Promotional Strategies and Marketing Investments

These are the key contradictions discussed in FIGS, Inc.'s latest 2024Q4 earnings call, specifically including: Promotional Strategy and Customer Engagement, and Marketing Investments:



Revenue and Financial Performance:
- FIGS reported a record revenue of $555.6 million for the fiscal year 2024, an increase of 2% year-over-year.
- This growth was supported by a strong performance in Q4, with revenues growing 5% year-over-year, driven by improved repeat customer frequency and positive trends in non-scrubwear and international businesses.

International and Non-Scrubwear Expansion:
- The international business grew 45% for Q4, representing 16% of net revenues, an all-time high for the brand.
- Non-scrubwear sales increased 13%, representing 24% of net revenues, with strong growth in footwear and underscrubs.
- These achievements were attributed to strategic efforts to expand into new markets and diversify product offerings.

Inventory Management and Promotional Strategy:
- After six quarters of targeted inventory reductions, inventory declined 3% year-over-year to $115.8 million.
- The company plans to subsequently manage inventory growth modestly above revenue, focusing investments on successful products.
- A shift in promotional strategy, emphasizing strategic promotions over transactional ones, is aimed at supporting long-term brand positioning and aligning with improved inventory levels.

Marketing and Channel Development:
- Marketing efforts will focus on enhancing brand exposure with increased top-of-the-funnel investments and localized messaging.
- Plans include expanding international presence, particularly in Asia, and growing the teams business with an outbound sales function.
- These efforts aim to reach a broader healthcare professional audience and drive brand awareness globally.