US' Figs' net revenues increase 4.7% to $124.9 mn in Q1 FY25

In the first quarter of fiscal 2025, US net revenues were $106 million, an increase of 2.9 per cent year-over-year. International net revenues were $18.9 million, an increase of 16.4 per cent year-over-year.

Gross margin was 67.6 per cent, a decrease of 130 basis points year-over-year, primarily due to product mix shift and higher freight expense, partially offset by a lower mix of promotional sales.

Operating expenses were $84.7 million, an increase of 3.6 per cent year-over-year. As a percentage of net revenues, operating expenses decreased to 67.8 per cent from 68.5 per cent in the same period last year, primarily due to lower stock-based compensation expense, partially offset by higher operational costs at the new fulfilment centre, higher shipping costs, and higher depreciation, the company said in a press release.

“First quarter results were ahead of expectations, supported by customer growth, strong full-priced selling, record AOV, and ultimately, a return to growth in the US,” said Trina Spear, chief executive officer and co-founder. “These positive signs bolster our conviction that the industry is on the path to normalisation and our actions are resonating. At the same time, we are also operating in a period of growing economic uncertainty, where we believe we have an opportunity to demonstrate our category leadership, build upon our competitive advantages, and leverage our incredibly strong balance sheet. We are maintaining the clear focus that we outlined at the beginning of the year – our unwavering efforts to serve our community and our intent to accelerate investment to better support our opportunity. We believe great brands uniquely harness adversity, and we will continue to boldly lead and define this industry going forward.”

“While 2025 started on a strong note, changes in US trade policies have added greater variability to our planning, particularly in the second half of the year. As we continue to evaluate a range of scenarios, our updated 2025 outlook reflects the projected impact of the current tariff structure, excluding the currently-paused reciprocal tariffs. We are determined to remain diligent and nimble in navigating this challenging environment, prudently planning our business while continuing our steadfast focus of serving those who serve others,” Sarah Oughtred, chief financial officer, said.

Fibre2Fashion News Desk (RR)