FIGS

Boot Barn Holdings, Inc. BOOT reported continued acceleration in its work business following efforts to reinvigorate the category last year. The company improved in-store merchandising, increased its marketing focus on the work business and invested in key third-party brands to strengthen its assortment for work customers. Management cited these initiatives as part of the progress seen in the category. The work boots business delivered high-single-digit comparable sales growth in the first quarter of fiscal 2027. This marked the fifth consecutive quarter of growth for the category and represented its strongest growth in the past few years. The performance also reflected the continued acceleration management has seen in the work business. Management said that the high-single-digit growth in work boots was supported by both Pull-On and Lace-Up styles. Lace-Up boots performed more strongly, but growth was not limited to a single product type. Management also noted that the category's performance was not being driven by oil-related demand. New third-party brands and a broader assortment of successful products from existing third-party brands also supported the category. The work apparel business continued to show improving momentum, with comparable sales strengthening over the last couple of quarters and reaching high-single-digit growth in July. Performance included both Flame Resistant (FR) and non-FR products, which management described as appearing broad-based across the work apparel assortment rather than being driven by a single product category. Overall, Boot Barn's work category continued to demonstrate positive momentum, supported by changes to merchandising, marketing and product assortment, as well as resilient demand from its needs-based customers. Management also said it expects the strength in its third-party work boots business to continue, although the transcript does not provide a specific forecast for the future growth rate of the overall work category. Boot Barn’s shares have lost 8.8% in the past three months compared with the industry’s decline of 6.2%. Image Source: Zacks Investment Research From a valuation standpoint, Boot Barn trades at a forward price-to-earnings ratio of 16.29, higher than the industry’s average of 13.20. BOOT presently carries a Zacks Rank #2 (Buy). Image Source: Zacks Investment Research The Zacks Consensus Estimate for BOOT’s current and next fiscal-year earnings implies year-over-year rallies of 22.6% and 10.5%, respectively. Image Source: Zacks Investment Research Some other top-ranked stocks have been discussed below: Victoria’s Secret & Co. VSXY operates as a specialty retailer of women's intimate apparel and other apparel and beauty products worldwide. At present, VSXY sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for VSXY’s current fiscal-year sales and earnings implies growth of 9.2% and 57%, respectively, from the year-ago figures. VSXY has delivered a trailing four-quarter earnings surprise of 81.9%, on average. FIGS, Inc. FIGS operates as a direct-to-consumer healthcare apparel and lifestyle company in the United States and internationally. At present, FIGS carries a Zacks Rank of 2. The Zacks Consensus Estimate for FIGS’s current fiscal-year sales and earnings implies growth of 18.2% and 89.5%, respectively, from the year-ago figures. FIGS has delivered a trailing four-quarter earnings surprise of 201.8%, on average. Fossil Group, Inc. FOSL designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. At present, FOSL carries a Zacks Rank of 2. The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4%, while the same for earnings indicates growth of 96.7% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 236.2%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report Fossil Group, Inc. (FOSL) : Free Stock Analysis Report FIGS, Inc. (FIGS) : Free Stock Analysis Report Victoria's Secret & Co. (VSXY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Urban Outfitters, Inc. URBN reported strong second-quarter fiscal 2027 results, with earnings matching the Zacks Consensus Estimate, while revenues surpassed the consensus mark. Also, both metrics improved from the prior-year quarter’s reported figures. The company delivered record second-quarter sales and profits, marking its eighth consecutive quarter of record performance. As a result, shares of URBN increased 9.5% yesterday.Management highlighted broad-based momentum across the Retail, Subscription and Wholesale segments, along with continued customer engagement and disciplined execution. All Retail segment brands posted positive comparable sales growth, while Nuuly continued to scale rapidly on strong subscriber growth. The Wholesale segment delivered robust double-digit gains, led by the FP Group. Urban Outfitters, Inc. price-consensus-eps-surprise-chart | Urban Outfitters, Inc. Quote This lifestyle specialty retailer delivered adjusted earnings per share of $1.72, in line with the Zacks Consensus Estimate. Adjusted earnings increased 8.9% year over year. The company’s earnings per share were $2.78 compared with $1.58 in the prior-year quarter.Net sales increased 10.4% year over year to $1,661.9 million, beating the consensus mark of $1,648 million. The sales performance benefited from strength across Retail, Wholesale and Subscription operations. Total Retail segment net sales rose 8% year over year to $1.39 billion, while comparable Retail segment sales increased 6.2%. Growth in comparable sales was driven by high-single-digit gains in digital channel sales and mid-single-digit growth in retail store sales. Comparable Retail segment sales increased 10% at FP Group, 8.4% at Urban Outfitters and 3% at Anthropologie. We estimated the Retail segment’s sales to increase 7.4% year over year.Within the FP Group, total sales increased 15% year over year to $478.1 million, driven by continued momentum across both Retail and Wholesale operations. Free People and FP Movement continued to benefit from strong customer demand, while the FP Group Wholesale segment delivered a 19% increase in revenues. Urban Outfitters posted an 8% comparable-sales increase, supported by strength across North America and Europe.The Wholesale segment posted net sales growth of 18.6%, driven by a 19.2% increase in FP Group wholesale sales due to higher sales to specialty customers and department stores.Nuuly, the company’s women’s apparel subscription rental service, continued to witness strong momentum. Subscription segment net sales increased 28.6% year over year to $178.6 million, primarily driven by a 30.4% increase in average active subscribers. Average active subscribers reached 484,000 during the quarter, while the subscriber base crossed 500,000 in early June. We estimated the Nuuly segment’s sales to rise 18.7% year over year. Gross profit rose 27.4% year over year to $721.6 million in the fiscal second quarter, mainly driven by higher net sales during the period. However, the reported gross margin increased 580 basis points year over year to 43.4%, which beat our estimate of 37.4% and benefited from a $95.7-million IEEPA tariff refund. Adjusted gross margin increased 4 basis points to 37.7%. The improvement was primarily driven by benefits from store occupancy costs from higher comparable Retail store sales and leverage in delivery expenses from initiatives that helped offset fuel-surcharge costs. These benefits were partly offset by higher Retail markdowns at Anthropologie and the negative impacts of tariffs and inbound freight fuel surcharges on initial merchandise costs.Selling, general and administrative (SG&A) expenses increased 10.5% year over year to approximately $433 million. Our model estimated SG&A expenses to increase 8.8% year over year in the fiscal second quarter. The increase was primarily driven by higher marketing investments to support customer growth and increased sales in the Retail and Subscription segments, along with higher store payroll expenses. These increases were partly offset by leverage in store payroll expenses resulting from higher Retail store sales. The company continued to invest in artificial intelligence technology to support its current and future operations. As a percentage of net sales, SG&A expenses remained flat at 26%, which met our estimate. URBN reported adjusted operating income of $193.1 million, up 11% from $174.4 million in the prior-year quarter. The adjusted operating margin improved 3 basis points year over year to 11.6%, reflecting the increase in adjusted gross margin. In the first six months of fiscal 2027, the company opened 23 stores and closed six stores. Store openings included four Anthropologie, seven Free People, 10 FP Movement and two Urban Outfitters stores, while closures included one Anthropologie, one FP Movement, three Urban Outfitters and one Menus & Venues location.As of July 31, 2026, URBN operated 252 Urban Outfitters stores, 257 Anthropologie stores and 284 FP Group stores, including 97 FP Movement locations. The company operated eight Menus & Venues restaurants and nine franchisee-owned stores. As of July 31, 2026, Urban Outfitters had cash and cash equivalents of $598.8 million, up from $332.2 million in the prior-year period. Marketable securities totaled $346.8 million, while total shareholders’ equity stood at $2.85 billion at the quarter-end.As of July 31, 2026, total inventory increased 11.8% year over year to $778.5 million. Total Retail segment inventory rose 12%, while comparable Retail segment inventory increased 8.4%. Wholesale segment inventory increased 10%. The increase in Retail inventory was primarily due to higher net sales and the timing of inventory receipts, while the increase in Wholesale inventory reflected higher sales.During the first six months of fiscal 2027, the company repurchased and retired 4.6 million shares for approximately $300 million. As of July 31, 2026, 10 million common shares remained authorized for repurchase under the existing program. Urban Outfitters’ management expects third-quarter fiscal 2027 total company sales to grow in the high-single-digit range, supported by continued momentum across the Retail, Wholesale and Subscription businesses.The Retail segment’s comparable sales are projected to increase in the mid-single-digit range, driven by high-single-digit growth at FP Group, mid-single-digit growth at Urban Outfitters and low-to-mid-single-digit growth at Anthropologie. Nuuly is expected to post high-twenties revenue growth, while the Wholesale segment is projected to generate low-teens growth.For the fiscal third quarter, URBN expects the gross profit margin to increase 25-50 basis points year over year. The anticipated improvement primarily reflects higher initial merchandise margins due to lower tariffs and leverage in occupancy costs, partly offset by higher fuel surcharges.Management anticipates fuel surcharges to continue affecting the business through the remainder of fiscal 2027. The company noted that these surcharges are expected to create an unfavorable impact through higher inbound freight and delivery expenses.Management expects third-quarter SG&A expenses to grow in line with or slightly below sales growth, reflecting continued investments in marketing, technology and AI initiatives while benefiting from leverage in store payroll and occupancy expenses. For fiscal 2027, management maintains its expectation for positive high-single-digit total company sales growth. The outlook reflects continued momentum across the portfolio, with Retail comparable sales expected to grow in the mid-single-digit range, Nuuly revenues projected to increase in the high-20% range and Wholesale revenues anticipated to grow in the low-teens range.URBN expects fiscal 2027 gross margin to expand by approximately 25 basis points year over year. Management sees an incremental margin opportunity in the second half, primarily from improved initial merchandise margins as tariff pressures moderate. However, fuel surcharges are expected to remain a headwind through the remainder of the fiscal year.For the full year, SG&A is expected to grow in line with sales, while inventory growth is expected to remain at or below sales growth as the company continues to focus on improving product turns. Management also plans to continue investing in marketing, technology and AI initiatives to support customer acquisition and long-term growth.Capital expenditures for fiscal 2027 are planned at approximately $475 million. Approximately 35% of spending is expected to be allocated to retail store expansion and support, 50% to logistics investments and the remaining 15% to technology investments and home-office expansion. The logistics investments are intended to expand capacity and automation across the Subscription and Retail businesses.URBN expects to open approximately 54 new stores and close approximately 18 stores during fiscal 2027. Net new store growth is expected to be primarily driven by FP Movement. The company plans to open 21 FP Movement, 12 Free People, 12 Anthropologie and eight Urban Outfitters stores during the year. URBN Stock Past Three-Month Performance Image Source: Zacks Investment Research Management expressed confidence as it enters the second half, citing double-digit sales and profit growth at Free People and FP Movement, positive comparable sales at Anthropologie and high-single-digit comparable sales at Urban Outfitters in both North America and Europe. Management also emphasized URBN’s multi-brand strategy and structural diversification across brands, demographics, product categories, distribution channels and geographies.Shares of the Zacks Rank #2 (Buy) company have gained 10.8% in the past three months against the industry’s 11.7% decline. FIGS, Inc. FIGS is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 89.5% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.Boot Barn Holdings, Inc. BOOT is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also holds a Zacks Rank #2 at present. The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.American Eagle Outfitters Inc. AEO is a specialty retailer of casual apparel, accessories and footwear. It carries a Zacks Rank of 2 at present.The Zacks Consensus Estimate for American Eagle's current fiscal-year earnings and sales suggests growth of 17.3% and 5.7%, respectively, from the year-ago actuals. AEO delivered a trailing four-quarter average earnings surprise of 48.5%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report FIGS, Inc. (FIGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Best Buy Co., Inc. BBY reported better-than-expected second-quarter fiscal 2027 results, with both the top and bottom lines rising year over year. Both metrics surpassed the Zacks Consensus Estimates. BBY posted adjusted earnings of $1.48 per share, which increased 70.1% from 87 cents a year ago and beat the Zacks Consensus Estimate of $1.37 by 8%. Best Buy Co., Inc. price-consensus-eps-surprise-chart | Best Buy Co., Inc. Quote Revenues rose 3.6% to $9.78 billion from $9.44 billion, topping the consensus mark of $9.56 billion by 2.2%. The performance reflected broad category growth and improved profitability. Enterprise comparable sales increased 4.1% compared with growth of 1.6% in the year-ago quarter. Domestic comparable sales advanced 4.5% in the second quarter compared with 1.1% growth a year ago. Computing and mobile phones comps increased 6.8% compared with 3.8%, while consumer electronics rose 5.6% compared to a 5.2% decline in the prior-year quarter. Services comparable sales grew 6.4% versus 3.7%, and appliances edged up 0.2% compared with a 9.2% decline a year ago. Entertainment fell 6.3% after increasing 39.3% in the prior-year period. Management identified computing, home theater and emerging categories such as AI glasses and trading cards as the largest weighted growth drivers, partly offset by weakness in traditional gaming. Domestic revenues increased 4.3% to $9.07 billion from $8.70 billion in the year-ago quarter. Domestic comparable online sales rose 5.1% in the second quarter, matching the rate recorded a year earlier. Online sales represented 33.1% of domestic revenues compared with 32.8% previously. Domestic gross profit increased to $2.18 billion from $2.03 billion in the reported quarter, while the gross profit rate expanded to 24% from 23.4%. The improvement reflected growth in Marketplace and Best Buy Ads and approximately $34 million of IEEPA tariff refunds, partly offset by lower product margin rates. Consolidated gross profit rose to $2.34 billion from $2.19 billion, with gross margin improving to 23.9% from 23.2%. SG&A expenses increased to $1.92 billion from $1.83 billion and represented 19.7% of revenues compared with 19.4% a year earlier. Operating income increased to $421 million from $251 million, while the operating margin expanded to 4.3% from 2.7%. Adjusted operating income rose to $417 million from $369 million, with the adjusted margin increasing to 4.3% from 3.9%. BBY recorded a $6 million reduction in restructuring charges compared with $114 million of charges a year ago. International revenues declined 4.2% to $709 million from $740 million in the second-quarter. Comparable sales decreased 1.8% compared with growth of 7.6% in the year-ago quarter. The company attributed the revenues decline primarily to lower comparable sales and the negative impact of foreign exchange rates. International gross profit declined to $158 million compared with $161 million, though the gross profit rate improved to 22.3% from 21.8%. Adjusted SG&A increased to $145 million from $143 million and represented 20.5% of revenues versus 19.3%. Adjusted operating income declined to $13 million from $18 million, while the corresponding margin fell to 1.8% from 2.4%. For the first six months of fiscal 2027, cash provided by operating activities increased to $1.30 billion from $783 million a year ago. Additions to property and equipment were $344 million compared with $341 million in the prior-year period. Cash and cash equivalents stood at $2.26 billion at quarter end compared with $1.46 billion a year earlier. Merchandise inventories increased to $6.30 billion from $5.82 billion. During the first six months, BBY paid $405 million in dividends versus $403 million a year ago and spent $36 million on share repurchases compared with $165 million. Best Buy raised its fiscal 2027 revenue guidance to $42.3-$42.8 billion from its prior forecast of $41.2-$42.1 billion. Comparable sales are now expected to increase 1.9-3% compared with the previous outlook ranging from a 1% decline to 1% growth. The company increased its adjusted earnings outlook to $6.70-$6.90 per share from $6.30-$6.60 and raised its adjusted operating income rate forecast to 4.4-4.5% from 4.3-4.4%. Capital expenditures remain projected at approximately $750 million, unchanged from the prior outlook. Management attributed the higher annual guidance to strong first-half performance and momentum entering the second half. This Zacks Rank #3 (Hold) company’s shares have gained 17% over the past three months, in line with the industry's growth. Image Source: Zacks Investment Research Some better-ranked stocks have been discussed below: FIGS, Inc. FIGS operates as a direct-to-consumer healthcare apparel and lifestyle company in the United States and internationally. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for FIGS’ current fiscal-year sales and earnings implies growth of 18.2% and 89.5%, respectively, from the year-ago figures. FIGS has delivered a trailing four-quarter earnings surprise of 201.8%, on average. Fossil Group, Inc. FOSL designs, develops, markets and distributes consumer fashion accessories in the United States, Europe, Asia and internationally. At present, FOSL carries a Zacks Rank of 2. The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4%, while the consensus mark for earnings indicates growth of 96.7% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 236.2%, on average. Boot Barn Inc. BOOT operates specialty retail stores in the United States and internationally. Boot Barn currently carries a Zacks Rank of 2. The consensus estimate for Boot Barn’s current fiscal-year sales and earnings implies growth of 15.7% and 22.6%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Best Buy Co., Inc. (BBY) : Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report Fossil Group, Inc. (FOSL) : Free Stock Analysis Report FIGS, Inc. (FIGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Baron Capital, an investment management company, released its Q2 2026 investor letter for the “Baron Focused Growth Fund”. A copy of the letter can be downloaded here. In the second quarter, the Baron Focused Growth Fund achieved a 13.26% gain, still trailing the Russell 2500 Growth Index’s 24.02% return. The underperformance was driven by ongoing concerns about AI's impact on portfolio businesses and underexposure to AI infrastructure. The IPO of SpaceX provided a boost, but overall, the Fund's companies are generating robust revenue growth and strengthening margins through enhanced client engagement and product offerings. Many stocks remain historically undervalued, and companies are beginning accelerated share repurchases, bolstering investor confidence. The Fund is perceived as compelling, benefiting from favorable market conditions and strong balance sheets, while inflation and interest rates are expected to remain stable. The Fund has outperformed its Benchmark over the past 3, 5, and 10 years, showing significant excess returns with lower market risk, attributed to a research-driven investment approach. The Fund maintains a commitment to long-term investing in growth-oriented businesses, utilizing a balanced portfolio to mitigate risk and potentially enhance returns. Please review the Fund’s top five holdings to gain insights into their key selections for 2026. In its Q2 2026 investor letter, Baron Focused Growth Fund highlighted FIGS, Inc. (NYSE:FIGS). FIGS, Inc. (NYSE:FIGS) is a direct-to-consumer healthcare apparel company known for its scrubwear for healthcare professionals. On August 19, 2026, FIGS, Inc. (NYSE:FIGS) closed at $14.49 per share, reflecting a market capitalization of $2.41 billion. FIGS, Inc. (NYSE:FIGS) posted a one‑month return of 56.82%, while its shares gained 109.09% over the past 52 weeks. Baron Focused Growth Fund stated the following regarding FIGS, Inc. (NYSE:FIGS) in its Q2 2026 investor letter: FIGS, Inc. (NYSE:FIGS) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held FIGS, Inc. (NYSE:FIGS) at the end of the first quarter, which was 33 in the previous quarter. While we acknowledge the potential of FIGS, Inc. (NYSE:FIGS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered FIGS, Inc. (NYSE:FIGS) and shared a list of stocks that beat expectations. In Q1 2026, FIGS, Inc. (NYSE:FIGS) stood out as a top contributor to Baron Focused Growth Fund's performance. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years. Disclosure: None. This article is originally published at Insider Monkey.

Wolverine World Wide, Inc. WWW delivered solid second-quarter 2026 results, with revenues exceeding the high end of its outlook and adjusted earnings per share rising year over year. Growth was led by Merrell and Saucony, while disciplined cost management helped improve profitability.The company continued to make progress with its brand-building strategy and delivered its seventh consecutive quarter of year-over-year growth. Management raised its fiscal 2026 outlook across key financial metrics, reinforcing confidence in the company’s growth trajectory. Investors have rewarded the improving execution. In the past three months, Wolverine’s stock has jumped 38.2% compared with the Zacks Shoes and Retail Apparel industry’s 0.9% growth. Image Source: Zacks Investment Research Wolverine reported second-quarter revenues of $506.4 million, up 6.8% year over year and 6.1% on a constant currency basis. Revenues exceeded the high end of the company’s outlook, driven by better-than-expected performance across the Active Group and Work Group.Growth was led by the Active Group, whose revenues increased 9.3% to $388.4 million. Merrell revenues increased 11.1% to $175.5 million, while Saucony revenues rose 9.9% to $158.6 million. However, Sweaty Betty revenues declined 2.4% to $40.3 million, while Work Group revenues decreased 1.6% to $105.8 million.International markets remained an important growth driver. International revenues increased 10.9% to $277.2 million, while direct-to-consumer revenues were essentially flat at $111.7 million. Wolverine revenues climbed 6.6% to $39.6 million, supported by stronger key franchises and marketplace improvements.The company delivered healthy earnings growth. Adjusted operating margin increased 80 basis points to 10%, while adjusted earnings per share rose 14.3% to 40 cents from 35 cents in the prior-year quarter. Reported earnings per share increased 15.6% to 37 cents.Wolverine has strengthened its financial position. Cash and cash equivalents increased 12.4% to $158.5 million, while inventory declined 17% to $269.3 million. Net debt decreased 22% to $443 million, providing the company with greater financial flexibility. Management raised its 2026 outlook following stronger-than-expected first-half performance. The company expects revenues to be in the range of $1.98 billion to $2 billion, compared with its previous outlook of $1.96 billion to $1.985 billion. Active Group revenues are expected to increase at a high-single-digit rate, up from the prior mid-single-digit outlook.Saucony’s revenue growth outlook was raised to the mid-teens from the prior low-to-mid-teens range, reflecting continued momentum across categories. Merrell is expected to grow mid-single-digits, while Sweaty Betty is expected to decline at a low-single-digit rate and Wolverine is expected to remain approximately flat.Gross margin is expected to be approximately 46.9% compared with the prior outlook of 46.4%. Adjusted operating margin guidance was raised to approximately 9.9% from 9.5%. Adjusted EPS is projected in the range of $1.55 to $1.65 compared with the previous outlook of $1.43 to $1.58. Operating free cash flow is expected to be $115 million to $130 million, up from $105 million to $120 million previously. Despite the stock's impressive rally, Wolverine continues to trade at an attractive valuation relative to its industry. WWW currently trades at a trailing price-to-sales ratio of 0.88X, below the industry average of 1.39X. The company carries a Value Score of A, suggesting that the stock remains reasonably valued despite its recent gains. Image Source: Zacks Investment Research Wolverine’s diversified portfolio provides a solid foundation for long-term growth, with Merrell, Saucony, Wolverine and Sweaty Betty spanning outdoor, running, work and women’s activewear. Merrell and Saucony together represent approximately two-thirds of the company’s business, while the broader portfolio gives Wolverine exposure to multiple footwear and apparel categories. The company has focused resources on brands aligned with favorable consumer and category trends.Merrell has significant room to expand its outdoor and lifestyle opportunity through product innovation and stronger brand relevance. Its Moab 3 and Moab Speed 2 franchises provide a strong product foundation, while the brand is extending its reach through its key-city strategy and broader lifestyle positioning. Merrell has recorded triple-digit basis-point market share gains in the U.S. hike category, highlighting its potential to capture additional share as it continues to modernize its product portfolio.Saucony offers another meaningful growth opportunity by combining its established running heritage with a broader lifestyle proposition. The brand is expanding its performance portfolio through products such as the Endorphin Elite 3, Triumph 24 and Hurricane 26, while collaborations and lifestyle initiatives are increasing its relevance beyond core running. The planned expansion into apparel, including a women’s capsule collection, could further broaden Saucony’s addressable market and create additional avenues for growth.International expansion represents another structural growth driver, with Wolverine’s brands marketed across approximately 170 countries and territories through owned operations, retailers, distributors, licensees and joint ventures. This extensive distribution infrastructure provides a scalable platform for increasing penetration in underpenetrated markets. The company’s international expertise and partnerships can also support brand expansion without requiring the same level of company-owned infrastructure.The company’s financial flexibility provides additional support for its long-term growth strategy. Wolverine generated $3.4 million in operating cash flow in the first half of 2026 compared with an operating cash outflow of $39.2 million in the prior-year period, while capital expenditures were $4.1 million. The company continues to make debt repayments and maintain dividend payments, providing scope to balance investment in its brands with disciplined capital allocation. The Zacks Consensus Estimate for Wolverine’s current financial year earnings implies year-over-year growth of 20.9%, while the estimate for the next financial year suggests another 13.5% increase.Analysts have become more optimistic following the company’s strong execution. Earnings estimates for 2026 and 2027 have been revised upward by 6 cents each over the past seven days to $1.62 and $1.84, respectively, reflecting improving expectations for the company’s earnings trajectory. Image Source: Zacks Investment Research Wolverine World Wide's strong second-quarter execution, raised 2026 outlook and continued momentum at Merrell and Saucony position the company favorably for continued expansion. Its leading brands provide a solid foundation, while international growth, innovation and improving marketplace execution offer additional avenues for growth.The stock's recent gains demonstrate strong investor interest, while its below-industry price-to-sales multiple and upward earnings estimate revisions provide further support to the investment case. With improving fundamentals, multiple long-term growth opportunities and favorable earnings revisions, Wolverine remains an attractive investment opportunity. The company currently carries a Zacks Rank #2 (Buy). FIGS, Inc. FIGS is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 57.9% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.Boot Barn Holdings, Inc. BOOT is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also holds a Zacks Rank #2 at present. The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.Fossil Group, Inc. FOSL is involved in designing, marketing and distribution of consumer fashion accessories. It also carries a Zacks Rank #2.The Zacks Consensus Estimate for Fossil Group’s current fiscal-year earnings suggests growth of 96.7% from the year-ago actuals. FOSL delivered a trailing four-quarter average negative earnings surprise of 236.2%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wolverine World Wide, Inc. (WWW) : Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report Fossil Group, Inc. (FOSL) : Free Stock Analysis Report FIGS, Inc. (FIGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

What a fantastic six months it’s been for Figs. Shares of the company have skyrocketed 42.2%, hitting $14.58. This was partly thanks to its solid quarterly results, and the run-up might have investors contemplating their next move. Is now the time to buy Figs, or should you be careful about including it in your portfolio? See what our analysts have to say in our full research report, it’s free. We’re glad investors have benefited from the price increase, but we’re passing on Figs for now. Here are three reasons we avoid FIGS, plus one stock we’d rather own. Revenue growth can be broken down into changes in price and volume (for companies like Figs, our preferred volume metric is active customers). While both are important, the latter is the most critical to analyze because prices have a ceiling. Figs’s active customers came in at 3.1 million in the latest quarter, and over the last two years, averaged 6.4% year-on-year growth. This performance was underwhelming and suggests it might have to lower prices or invest in product improvements to accelerate growth, factors that can hinder near-term profitability. Free cash flow isn’t a prominently featured metric in company financials and earnings releases, but we think it’s telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. Figs has shown poor cash profitability relative to peers over the last two years, giving the company fewer opportunities to return capital to shareholders. Its free cash flow margin averaged 10.7%, below what we’d expect for a consumer discretionary business. ROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). Unfortunately, Figs’s ROIC has decreased significantly over the last few years. Paired with its already low returns, these declines suggest its profitable growth opportunities are few and far between. We cheer for all companies serving everyday consumers, but in the case of Figs, we’ll be cheering from the sidelines. Following the recent surge, the stock trades at 39.9× forward P/E (or $14.58 per share). This valuation tells us a lot of optimism is priced in - we think other companies feature superior fundamentals at the moment. Let us point you toward our favorite semiconductor picks and shovels play. WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Figs’ second quarter saw robust momentum, with management attributing the positive results to broad-based growth across product categories, channels, and geographies. CEO Trina Spear highlighted that active customer growth, record average order value, and expanding market share were key contributors. The company’s ability to drive both new and returning customer engagement, supported by successful marketing campaigns and replenishment-driven purchasing, helped underpin net revenues per active customer reaching an all-time high. Management also credited improved full-price selling, lower return rates, and operational efficiencies for the substantial margin expansion achieved during the period. Is now the time to buy FIGS? Find out in our full research report (it’s free). Revenue: $196.6 million vs analyst estimates of $186.1 million (28.8% year-on-year growth, 5.6% beat) Adjusted EPS: $0.11 vs analyst estimates of $0.07 (66.9% beat) Adjusted EBITDA: $36.59 million vs analyst estimates of $25.18 million (18.6% margin, 45.3% beat) Operating Margin: 17.9%, up from 6.5% in the same quarter last year Active customers: 3.1 million, up 360,000 year on year Market Capitalization: $2.40 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Robert Drbul (BTIG): asked about drivers of new and returning customer growth. CEO Trina Spear cited product quality, viral marketing campaigns, and the replenishment nature of healthcare apparel, emphasizing word-of-mouth as unique to the industry. Brooke Roach (Goldman Sachs): inquired about the impact of the V Coterie acquisition on category expansion. Spear described it as a “TAM creation opportunity,” enabling personalization and emotional connection with customers. Matt Koranda (ROTH Capital): questioned the sustainability of average order value gains. CFO Sarah Oughtred explained that pricing actions and lower discounting were primary drivers, with continued strength expected until those increases annualize next year. Ashley Owens (KeyBanc): asked about mitigating the supply chain disruption in Jordan. Spear and Oughtred said FIGS had shifted production to other partners and expedited shipments, minimizing potential inventory gaps. Adrienne Yih-Tennant (Barclays): pressed on long-term growth vectors. Spear ranked international, community hubs (retail stores), and TEAMS (institutional sales) as key areas for future expansion, all still in early stages. In upcoming quarters, the StockStory team will be watching (1) the pace of international customer adoption and local market performance, (2) execution of new product and collaboration launches that drive higher order values and customer frequency, and (3) the impact of supply chain adaptations and cost controls on margins. Progress in retail store expansion and institutional sales channels will also be closely monitored as indicators of multi-channel growth. Figs currently trades at $14.58, up from $11.24 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 5 p.m. ET Senior Vice President of Investor Relations - Tom Shaw Co-Founder and Chief Executive Officer - Catherine Spear Chief Financial Officer - Sarah Oughtred Operator: Hello, everyone. Thank you for joining us, and welcome to the FIGS Second Quarter Fiscal 2026 Earnings Conference Call. [Operator Instructions] I will now hand the conference over to Tom Shaw, Senior Vice President of Investor Relations. Please go ahead. Tom Shaw: Good afternoon, and thank you for joining us to discuss FIGS Second Quarter 2026 results, which we released this afternoon and can be found in our earnings press release and in the shareholder presentation posted to our Investor Relations website at ir.wearfigs.com. Presenting on today's call are Trina Spear, our Co-Founder and Chief Executive Officer; and Sarah Oughtred, our Chief Financial Officer. As a reminder, remarks on this call that do not concern past events are forward-looking statements. These may include predictions, expectations or estimates, including about future financial performance, market opportunity or business plans. Forward-looking statements involve risks and uncertainties, and actual results could differ materially. These and other risks are discussed in our SEC filings, including in the 10-Q we filed today. Do not place undue reliance on forward-looking statements, which speak only as of today and which we undertake no obligation to update. Finally, we will discuss certain non-GAAP metrics and key performance indicators, which we believe are useful supplemental measures for understanding our business. Definitions and reconciliations of these non-GAAP measures to their most comparable GAAP measures are included in our shareholder presentation. And now I would like to turn the call over to Trina. Catherine Spear: Thanks, Tom. Good afternoon, everyone, and thank you for joining us today. FIGS strong broad-based momentum continued in Q2, highlighting the sustainability of our success and our truly unique positioning. Net revenues grew 29% to $197 million, beating our outlook and marking our third straight quarter with 25% plus growth. Notably, this is the strongest sustained stretch of growth we have seen since 2021. What is most exciting is that our growth is coming from across our business rather than from just one part of it. We are seeing tremendous traction across the board, our channels, product categories, geographies and customer cohorts, driving a number of record highs for the brand. As examples, we have never sold more scrubwear in a single quarter than we did in Q2 and our 3 market expansion opportunities, international, Teams and community hubs, each achieved new highs. Our strength is seen in the metrics. Active customer growth surged 13% to 3.1 million. AOV hit its own record of $127 and purchase frequency continued to increase. This powerful combination drove net revenues per active customer to an all-time high for the brand of $229, surpassing even our COVID era peak of $227. This success is the manifestation of everything we've been outlining in recent quarters and gives us even greater conviction in the growth opportunities that lie ahead. Just as impressive is our progress on profitability. Excluding the prior year portion of tariff refunds, adjusted EBITDA margin surged to 18.6%. Underlying that performance, our strong margin expansion was driven by efforts to increase full price selling and improve returns, both strong indicators of brand health as well as overall expense leverage given our incredible top line momentum. And finally, we have not only accelerated our share buyback efforts during the quarter, but just announced a new $100 million authorization, demonstrating the confidence we have in our brand, our strategy and the opportunity in front of us. With this strength, I want to take a moment to reiterate why we believe we are winning because I think it is an important context for everything that follows. It starts with brand differentiation. Technically advanced products are nonnegotiable for us, and we are extending our premium positioning and bringing even more impact and relevance to our product lineup from scrubs to the full layering system to solve needs of health care professionals. And what truly sets FIGS apart is our unique ability to drive connection and be part of the cultural conversation in health care in a way no one else is. This combination, product and storytelling, is incredibly powerful and hard to replicate. Second, we are building a durable foundation for growth, supported by sustained investments across our team, technology and customer acquisition. We have talked a lot about our growing sophistication of how we bring the brand and product to life, efforts designed for more than driving performance in a single year. They are about building the resiliency and agility to continue delivering elevated performance across top line, profitability and shareholder returns over the long run. And third, we are serving the best industry in the world. Health care touches everyone. Those needs are only growing as the demands of the profession are compounded by an aging population and growing focus on wellness. Health care and social assistance is projected to have the largest job growth and be the fastest-growing industry over the next decade, and we see this demand in our data. With an average of over 50,000 new jobs coming into the industry each month this year, the broader health care industry is serving as a powerful driver of overall job creation in the United States. These macro tailwinds, combined with the strong fundamentals of health care apparel, make this industry highly attractive. Unlike other apparel companies, we do not sell product that's driven by fad or prevent inventory risk. We sell nondiscretionary replenishment-driven uniforms that do not go out of style and that health care professionals need all year round. And because so many of them work in densely packed institutions wearing FIGS as a walking billboard, we benefit from a word-of-mouth dynamic that is very unique. Before I move on, I want to provide a quick update on our supply chain. I used the word resilience earlier in my remarks and applies here too. U.S. Customs and Border Protection recently issued a withhold release order that currently prevents us from importing products into the United States from our partner in Jordan. Through COVID and the disruption in the Middle East, facing supply chain challenges is not new to us, and we have always been able to manage through them due to the strength and flexibility of the supply chain we've built. That remains true today. Our team is cross-functionally adapting our planning to mitigate disruption in the second half of the year. This includes leveraging capacity with our other strong existing partners and expediting their production. As a reminder, our high-volume, low SKU count footprint is a powerful differentiator that makes us highly attractive to the world's best suppliers. Most importantly, even with this challenge, we are able to raise our top and bottom line targets. We have not only passed through the upside of our Q2 results, we have also layered in increased expectations for the balance of the year. This is exactly the kind of agility that spotlights the strength of the foundation we have built, and it positions us for long-term execution and delivering great products to our community. Now let me share some of the progress we are most excited about across product, brand and market expansion. Starting with product. We are winning at the intersection of style, color, fabric and fit. On style, we are evolving choice for health care professionals, complementing our successful core styles with modern looks that combine functionality, design and comfort. Our scrub pants are a great example. Wider leg solutions continue to resonate strongly, and we're continuing to bring newness in this area, including new waistband options that debuted this quarter. This strategy reflects our unique merchandising flywheel in action. We launched limited edition options that generate excitement and a quick sell-through while driving greater interest in the core that represents the majority of our business. Color is always important at FIGS. It is woven into the DNA of our brand across both core and limited edition styles. We are always listening to feedback, analyzing trends and responding quickly. Espresso is a great example. To say that our community was clamoring for this color was an understatement, and we heard them. So we responded with two separate launch moments this year, including a product drop just last week that sold out quickly, and we have used color to tap into the cultural moments, incorporating it into our Star Wars collaboration in Q2 and into our new collaboration with Marvel's Spider-Man, which launched this quarter timed with the movie's release and was a huge hit. On fabrication, we remain focused on delivering across the full spectrum of use cases, complementing our hallmark FIONx with FORMx and now our new FIBREx. FORMx continues to resonate and grow as a complement to our core offering, and we're super excited to build on the FIBREx story in the weeks ahead. And wrapping all of this together is fit. All new products are aligned with the fit work we have been driving the past few years, and we continue to be encouraged by the gains we are seeing through lower returns and positive customer feedback. On non-scrubwear, we remain focused on building out our layering system. We are winning here. 40% growth in the quarter was the highest we've seen in nearly 4 years. Non-scrubwear now represents nearly 20% of our business, and we believe it can mix even higher over time as we build out key areas, including under scrubs, lab coats, outerwear, footwear, medical-grade compression socks and jewelry. Health care professionals may wear uniform, but they're looking for ways to personalize and accessorize their look, which brings me to something we're incredibly excited to announce. As you may have seen from our recent social posts, we have acquired V Coterie, a long-time partner of ours on pins. V Coterie brings a broad range of pins, jewelry, charms and accessories dedicated to the health care community. These are not just any kinds of accessories. V Coterie's founder, Lynna Van Merkey, who we are excited to announce is now part of FIGS, is a former dentist and an incredible entrepreneur who has creatively married jewelry and health care in a way no one else has. While V Coterie is immaterial from a purchase standpoint, our community loves these products, and we believe this positions us to unlock meaningful growth opportunities in this category going forward. Ultimately, this is a great example of how we drive a greater share of wallet and expand consideration for our brands. Moving on to the brand side. We had a series of powerful moments throughout the quarter. And what I want to highlight most is how we're threading our support of this community across multiple efforts in real impactful ways. Starting with Nurses Week. We are excited with our financial performance, though the bigger story was how we brought an authentic reflection of the experience of nurses to life. This work highlighted the multitude of challenges they face every day on the job while also celebrating their unwavering commitment to always putting their patients first, something that will never change. That work then carried forward in a profound way 2 weeks later when we took action against those very challenges at our Healthcare Human Rally in Washington, D.C. I previewed our plans on the last call and the actual event surpassed our expectations. This was our biggest advocacy effort to date with hundreds of awesome humans at the rally, more than 30 meetings with key members of Congress and triple-digit gains across key social measures. Together, we pushed forward on 3 critical priorities: passing the FIGS-Created Healthcare Human Act, the first ever federal tax credit specifically for health care professionals, funding the Dr. Lorna Breen Act to provide mental health services specifically for health care professionals and introducing the Speak FREE Act, protecting health care professionals right to speak up when they have safety concerns for themselves or their patients. Noah Wyle was by our side again, and I could not be prouder of what this community showed up and did together. We then took these efforts a step further with the return of our FIGS retreat in June. We hosted nearly 80 health care professionals creating a space where they could recharge, care for themselves, connect through shared experiences and reenter around what matters most. This is a manifestation of our purpose and how we show up for our community, and we're making these important touch points a priority going forward. Our brand momentum has carried into Q3. We have already had a series of great product moments, including our Spider-Man collaboration, the return of espresso and the debut of V Coterie on our platform. And yesterday, we kicked off our back-to-school campaign with the latest chapter of Never Change, highlighting the lifelong learning journey through the eyes of residents. Turning to market expansion. Each of our 3 growth drivers delivered record net revenues. International delivered 67% growth with over 50 points of that growth coming from our existing comp markets. We now operate in 85 international markets, including 27 new markets opened year-to-date. As we become more efficient overall, we are increasing our investments in international brand building. We are finding more ways to localize and activate in-person moments, including our first Nurses Week event in Toronto. We are in the early innings of recruiting ambassadors and supporting user-generated content in key markets where that has outsized importance. We are ramping new search and social platforms, including LINE in Japan, Kakao in South Korea and Douyin in China, all highly relevant digital channels to accelerate local reach and impact. Looking at our TEAMS business, we continue to build momentum as we focus on strengthening relationships with existing institutions, growing our pipeline of future accounts and executing on our technology road map. As an example, we recently onboarded Bupa Dental Care, a division of the British United Provident Association, which is one of the largest private health care and insurance companies in the world. Our initial work here will focus on outfitting their nearly 400 dental centers across the U.K., demonstrating the type of reach and impact the channel can have both domestically and abroad. Supporting those efforts on the tech side, we continue to add functionality to our platform in Q2. We have additional work ahead on our road map, all designed with the same intention, make it as easy as possible to outfit a diverse range of health care workforces in FIGS and create unparalleled value in that experience. Community Hubs also delivered record results with both strong comp store performance and new store contribution. Our in-store work remains focused on optimizing the assortment, going deeper in core colors and styles to serve the higher mix of new customers coming through the channel. Looking ahead, our team has signed four new leases for openings planned for later this year, including Fashion Square in Scottsdale, Tysons Corner outside of Washington, D.C., Valley Fair near San Jose, and Aventura Mall in Miami, each leveraging strong local healthcare communities. Our team is already hard at work securing locations for 2027 and beyond, and we cannot be more excited about where this channel is going. Before I hand it over to Sarah, I want to share one last but important point about what makes me feel so confident. In the past, I've spoken about what I believe to be the leading indicators that tell us where we are as a brand, search, website traffic, social followers and more. When these metrics inflected last year, we believe we are starting to turn the corner, and that's exactly what happened in the subsequent quarter with strong momentum across our business. And what's encouraging to me is that these leading indicators continue to grow, creating a fantastic pipeline for future engagement. And across the entire brand funnel from awareness to consideration to preference, we are seeing year-to-date improvement. Our brand is increasingly cutting through at a time when many others in the industry are treading water. Ultimately, we believe we are positioned to expand our leadership position in the industry and change the game for health care professionals in ways that no one else can, just as we have been doing for the past 14 years. In the near term, we see this through our strong outlook on both top and bottom lines. And in the long term, we know we're just getting started as there's so much additional opportunity and so much impact we can still have across the health care community. With that, I will turn it over to Sarah to walk through our financial results and full year outlook. Sarah Oughtred: Thanks, Trina. Our second quarter results were outstanding from top to bottom, building off a great Q1 with across-the-board wins and setting us up for a stronger second half of the year than our implied prior guide. FIGS is building a powerful ecosystem for the entire health care community, something that extends well beyond transactions. And this community in turn is instrumental in feeding back to the brand, giving what we believe is a very special and unique story in the broader consumer space. Let me first start with a recap of our incredible Q2 performance, which included a number of key records and multiyear highs that Trina outlined upfront. I'll then provide an update on our increased full year guidance, including our current assessment of tariff-related impacts and our readiness to achieve our raised second half expectations. On to the numbers, where Q2 net revenues increased 29% year-over-year to $196.6 million, outpacing our outlook, calling for growth in the low 20% range. Virtually all parts of our business are growing at strong rates as we look across categories, geographies and channels. We saw highly productive launch events and promotions during the period and continue to be incredibly encouraged by how we are performing during the business as usual selling days without specific brand activations. Active customer growth accelerated again to 13% year-over-year to reach 3.1 million, led by particular strength with customers coming back to the brand. Average order value increased 9% to $127, led by higher average unit retail due to early 2026 pricing actions and also driven by improved quality of sales that were supported by lower discount and return rates. Complementing these drivers, we are seeing improved purchase frequency. Together, these factors drove our trailing 12-month measure for net revenues per active customer 10% higher to a FIGS record $229. By category, scrubwear grew 27%, representing 82% of net revenues for the period. We continue to be pleased with the range of performance here with strong growth coming across both core franchises and limited edition offerings. Color in particular, was impactful with improved sequencing and newness also supporting core productivity. Non-scrubwear surged 40%, representing 18% of net revenues. Growth was broad-based, highlighted by underscrubs, where we saw an improved assortment across styles and fabrications as well as outerwear, which was driven by core product family extensions. We are positioned to add even more excitement and differentiation around both of these areas in the upcoming quarters. Accessories are another emerging opportunity with strength registered across diverse areas such as hair accessories, our bags assortment and compression socks. We are excited to unlock further growth with the full addition of the V Coterie jewelry assortment, which has already been a very productive part of our assortment. The overall cohesiveness of our product strategy across color, technically advanced scrubwear, expanded head-to-toe expansions and great storytelling is creating a powerful ecosystem and a real competitive advantage for FIGS. By geography, U.S. net revenues increased 22% to $158.7 million, while international net revenues increased 67% to $37.9 million. In the U.S., I would reiterate some of the leading indicators that Trina pointed out, both as key drivers of our Q2 business and also as bullish signs of what's to come. Strong gains registered across search and traffic are great starts, and we then see the added stickiness through ongoing traction across our social following, e-mail sign-ups and engagement rates. We also saw great signs across both new and returning customers. New customers are increasingly coming in at high values and holding that value in subsequent periods. Returning customer strength reflects high purchase frequency and customers moving into higher spending thresholds. International growth continues to reflect a strong balance between new and returning customers. For Q2, this included exceptional growth in Europe, Latin America and Mexico as well as meaningfully better performance in Canada, Australia and the Middle East. As we turn to margins, let me first provide some details on tariff refunds. Last quarter, we indicated that we had taken action to recover approximately $20.5 million paid under the IEEPA tariff. Based on initial receipts of $4.5 million in Q2, we assessed that the recovery of the remaining claims was probable and included the full benefit in our GAAP results. This resulted in a $15.4 million reduction to cost of goods sold, which related to tariffs expensed since the IEEPA tariffs were implemented in February 2025, including $7.9 million expensed in fiscal 2025 and $7.5 million expensed in the first half of fiscal 2026. In addition, we recognized an approximate $5.1 million reduction in the carrying value of our inventory balance for tariffs previously capitalized, which will be realized on the P&L as those goods are sold in future periods. Subsequently, we have received the full amount of the refund in Q3, which we expect will be recorded in cash with our future results. I'll further detail each of these impacts to results and our outlook in my commentary ahead. Looking at Q2 gross margin, we experienced an 820 basis point improvement to 75.2%. This includes the 780 basis point cumulative impact from the $15.4 million tariff refund. This core improvement excluding the refunds was primarily driven by the positive impacts from pricing and ongoing efficiency efforts, including product costing as well as better-than-expected performance from higher full price selling and lower return rate. These gains more than offset the impact of higher non-IEEPA tariffs. Our selling expense for Q2 was $43.7 million, representing 22.2% of net revenues compared to 22.6% last year. The lower expense rate was driven by favorable outbound shipping rates as well as net revenue leverage. Partially offsetting these efficiencies, we had the impact of supply chain investments and international mix. Marketing expense for Q2 was $28.5 million, representing 14.5% of net revenues, down from 15.2% last year. Following the higher planned marketing rate in Q1, our Q2 performance reflected the impact of net revenue leverage as well as digital CAC efficiencies. At the same time, we continue to opportunistically invest across our business, including brand awareness initiatives internationally, our FIGS retreat activations and through expanded brand partnerships. G&A for Q2 was $40.4 million, representing 20.5% of net revenues compared to 22.8% last year. The lower G&A rate was primarily due to net revenue leverage and lower stock-based compensation expense, partially offset by investments in our team. Inclusive of the tariff refund benefit, our operating margin for Q2 was 17.9% compared to 6.5% last year. Net income for the quarter totaled $28.4 million or diluted EPS of $0.15 compared to net income of $7.1 million last year or diluted EPS of $0.04. Measuring adjusted EBITDA for the period, we have excluded the $7.9 million benefit of IEEPA tariff refunds that pertain to tariffs on goods sold in fiscal 2025. This resulted in adjusted EBITDA margin of 18.6% as compared to 12.9% in the same period last year. While Q2 adjusted EBITDA does include the benefit of the portion of the tariff refund attributable to goods sold in the year-to-date period, which contributed to our stronger performance, it aligns with how our forward-looking performance will be accounted for as impacted inventory is sold. On our balance sheet, we finished the quarter with net cash, cash equivalents and short-term investments of $296.3 million. Inventory decreased 12% year-over-year to $119.6 million, inclusive of the $5.1 million IEEPO-related inventory adjustment. Outside of these developments, we continue to drive greater efficiency here as we balance strategic buying with more proactive inventory management. We expect Q3 inventory will remain down double digits year-over-year given our supplier transitions, though remain confident in delivering our stronger top line outlook. On the capital allocation side, share repurchases during the quarter under our ongoing repurchase program totaled approximately $24 million at a weighted average price of $11.94 per share. We have now repurchased approximately $81 million cumulatively since initiating the program nearly 2 years ago. Additionally, our Board of Directors authorized an additional increase of $100 million to our ongoing share repurchase program, bringing our total share repurchase capacity to $119 million. Finally, capital expenditures for the quarter were $2.6 million, continuing to reflect software capitalization and leasehold improvements with larger community hub-related outlays still planned later in the year. Now turning to our updated outlook. Our full year 2026 net revenues are now expected to grow approximately 20%, ahead of our prior outlook of 14% to 16% growth. This includes both our stronger first half momentum as well as higher expectations for the back half of the year. Embedded in this outlook, we are planning for Q3 net revenue growth of approximately 20% year-over-year and Q4 net revenue growth of approximately 10% year-over-year. This incorporates our comparison against improving performance as we move through the second half of fiscal 2025, including our 33% growth acceleration achieved last Q4. On to gross margin, we now expect our full year GAAP gross margin to approximate 69.5%, inclusive of the tariff refund during the quarter and the expected benefit as impacted goods in inventory are sold during the second half of the year. The underlying gross margin expectation is unchanged from our prior guide, which called for modest year-over-year full year improvement from 66.5% in fiscal 2025. On the positive side, we see both our Q2 operating performance, coupled with the modest improvement relative to our prior expectations given the Section 301 tariffs that were implemented as of July 24. This new rate assumption of 12.5% compares to our prior global tariff assumption of 15% but with average costing and the timing of shipments, the benefit is minimal for the fiscal year. Largely offsetting these positives, we plan to use airfreight to expedite certain products. It is important to remind you of the gross margin comparisons in the back half of the year. We continue to expect a year-over-year decline in Q3, followed by a large year-over-year improvement in Q4. While our Q4 gross margin rate is planned to be the lowest of the year, it is still expected to remain well above the prior year in part due to the large inventory write-off comparison. Shifting over to SG&A. We expect better net revenue leverage will play the largest factor overall, benefiting Q3 relative to Q4. We expect this to mean expense leverage across selling, marketing and G&A in the third quarter, though only on the marketing line during the fourth quarter. Overall, we have increased our full year operating margin outlook from between 7.8% and 8% to approximately 10.8% inclusive of refunds. We have also increased our full year adjusted EBITDA margin outlook from between 13% and 13.2% to between 14.8% and 15%, inclusive of refunds associated with our first half performance and sell-through expectations in the second half. This includes an expected Q3 adjusted EBITDA margin of approximately 14%, up from the 12.4% level in the prior year period. In summary, the FIGS brand is resonating more than ever, and we are executing against this opportunity exceptionally well in a dynamic operating environment. Our net revenue growth guidance is nearly double our original outlook, while our profitability continues to inflect. We believe this demonstrates the growing resonance of our brand, the incredible execution of our team and the unique opportunity we have ahead to continue redefining expectations with the health care community. We are now happy to take your questions. Operator? Operator: [Operator Instructions] Your first question comes from the line of Bob Drbul with BTIG. Robert Drbul: Congratulations on another stellar result. Catherine Spear: Thanks, Bob. Appreciate it. Robert Drbul: Got it. I guess the biggest question that I would love to just start with is when you look at new customer growth, returning customer growth, can you just talk us through what you think is working so well right now with the customer situation? Catherine Spear: Sure. I mean I think it goes back to our 2 North Stars, which is product and marketing. We have continued to deliver the best product that meets every need of a health care professional, and we're doing that head to toe across our layering system. We've continued to make steady improvements on our fit, on our function, bringing comfort, durability and style to our community. And I think on the second piece, which I know you know, Bob, is around marketing. We continue to roll out incredible campaigns that are really resonating and going viral regularly within our community. And you've seen that throughout the year with our Never Change campaign this year. And so I think that's driving new customers to the brand. I think the beautiful thing about our business is that so much is still driven by word of mouth. Every big customer is a walking billboard, acquiring that next customer for us, and that's truly a unique dynamic given the densely populated environment that health care professionals work in. And then in terms of the returning customer piece, this is a replenishment-driven industry. Health care professionals need their uniforms to go to work and do their job, and they're coming back over and over again for their Catarina top and Isabel wide-leg pants, right? They're coming back for their underscrubs and their scrub jackets and their compression socks and kind of all of these different pieces and different parts of their uniform that they need to go and do their job. So it's been exciting to see the results for the quarter, but we really do feel like we're just getting started. And so more to say, but definitely excited by what we're seeing in the business and what we're going to continue to execute on. Operator: Your next question comes from the line of Brian Nagel with Oppenheimer. Brian Nagel: So I would like to add my congratulations. -- a spectacular quarter here. Congrats. Catherine Spear: Thank you Brian. Brian Nagel: I just want to follow up a bit on Bob's question. But one of the -- when we look at that, the customer growth and really the overall sales here, in the past, I think you talked about lapsed customers and maybe that being a point of weakness. It seems like it's a point of strength now. So what do you see with that customer base, those who had maybe shopped at FIGS before went away, and they're coming back now? Is that becoming an incremental significant driver? Sarah Oughtred: We're really driving the customer growth across several components. So customer growth is being driven from new customers. It's being by those lapsed customers that are coming back and also through just the frequency of our returning customers. And so all 3 of those have really been working for us now for several quarters. When we look at those lapsed customers, they are coming back at a good clip. That has been pretty consistent for us. And we feel like we are providing the right product assortment, the right opportunity for them to continue to come back and be engaged in the brand. And so we believe that the growth going forward will continue to come across all of those components. Brian Nagel: That's helpful, Sarah. And my follow-up question, just with regard to the tariff refund. So a lot of consumer companies now are starting to discuss this topic. But clearly, a boost here. We saw at least in the GAAP results. But I guess the question I want to ask is strategically, how do you -- does this receiving these refunds, does it change how you think about sort of, say, doing business over the next -- over the -- in the coming quarters? Sarah Oughtred: Yes. So we did get back $20.5 million, and we are in a very significant cash position. So we're not earmarking it for anything specific. What we do every day is about improving the lives of health care workers, finding solutions to their problems. So we are going to continue to do that as we have been doing, which is investing back into our business to fuel our efforts towards that mandate. And we're also going to continue to deliver returns for our shareholders. You would have seen that with us buying back. So I don't think for us, it changes anything. It just helps continue to deploy that cash in a really efficient way to drive future growth. Brian Nagel: Congrats again. Operator: Your next question comes from the line of Brooke Roach with Goldman Sachs. Brooke Roach: Trina, I'm curious if you could talk a little bit more about the strategic expansion of your business as you look to do this expansion into V Coterie and jewelry. What does this mean for your category and your TAM overall as you look to build upon all aspects of wardrobing the health care professionals? Catherine Spear: Thank you so much, Rob, for the question. We couldn't be more excited about the acquisition of V Coterie. V Coterie was founded by an incredible entrepreneur named Lynna, who now is a part of FIGS. She's our Head of Pins, Charms and jewelry, and she's somebody that we've known for quite some time. Heather and I have known Lynna for about, I would say, over 7 years. She actually was a FIGS ambassador and also has built this incredible company. And it's -- to your point, it's really about helping health care professionals personalize their uniforms and it tells something about who they are and what they do. And -- also charms and jewelry and pin, it's a really personal thing, and it creates this very deep emotional connection between us and our community. And we're really looking to help health care professionals celebrate milestones like graduating nursing school, earning certifications, working in an ICU. And so this is like a really exciting thing that's going to help us build even more emotional loyalty with our community. And then to your point, I've always said that lazy companies sell into TAM and innovative companies create TAM. And that -- this is a TAM creation opportunity. We are inventing TAM where this wasn't really part of the industry, right? And so having these jewelry and charms and pins, this is a massive industry that wasn't part of our industry. And so building that in and making it fun and cool has been really exciting. We're seeing such -- even in the first month, we're seeing such a strong response. We've sold out of a number of key styles across our assortment already. We're moving fast to get back into that to get that back into stock. And so I would say, overall, like health care is hard. And as you know, Brooke, we bring the fun, which is just so, so important, and that's what we're going to continue to do as we continue to drive this connection with our community. Brooke Roach: And Sarah, maybe just a follow-up for you. With adjusted EBITDA margins now guided at about 15%, do you think that this is a new base from which you can grow as you move into 2027? -- especially as you cycle some of these tariff refunds and work through some elevated raw material and oil costs? Sarah Oughtred: Yes. So I would say just to ground in that 15%, it does include the benefit of tariffs that were previously spent in Q1 and Q2. And so that is a benefit that needs to be considered. I would say offsetting that, we do have some additional airfreight that we're bringing in. And I think it is a fairly clean base for us to continue to build off of into the upcoming years. And so many different puts and takes, but that 15% does represent how we would be reporting our results for any future years as well. Operator: Your next question comes from the line of Matt Koranda with ROTH Capital. Matt Koranda: Great job. I guess I'll ask one on AOVs. They really took a step up in the second quarter. Just wanted to see if you could maybe unpack some of the drivers there in terms of pricing? Are consumers building bigger baskets? Or are we getting a better mix around the outerwear assortment and some of the higher ASP items there? Sarah Oughtred: Matt, so our AOV did increase by 9% in the quarter, consistent with the growth that we saw in Q1. A portion of that is really being driven by the pricing that we took in Q1. In addition, we're seeing the added benefit of lower discounts and improved returns. So that's really been great to see as well. And so yes, we're happy with how that's trending. It isn't necessarily coming through UPT at this point, but we did expect that just given the higher AURs with pricing. So overall, those expectations are still beyond what we had originally thought when we had taken pricing and really happy that there's other factors, as I mentioned, outside of pricing that are really driving that higher quality growth within our AOV. Matt Koranda: Okay. Helpful. And then just going forward, I guess, what are you thinking in terms of what's embedded in the sales growth outlook from an active customer standpoint? I guess what I'm asking is engagement trends have just been very strong for the last couple of quarters, and I would assume you kind of pulled those forward. But how should we think about, I guess, higher engagement with existing customers versus new customers that are driving the growth for the remainder of the year? Sarah Oughtred: Sure. Yes. So I mean, as we said before, the growth in total revenue is coming from growth in our active customers, growth in our orders per customer and growth in our net AOV. We would expect that, that active customer growth will continue to be at a strong rate for the rest of the year. We also think that AOV will continue because, again, a lot of that is really from pricing. So that will continue for the rest of the year until it annualizes in Q1 of 2027. And then I think it's the orders per customer that we've seen really good frequency come. We're not planning for that same degree of frequency growth, but that could be an opportunity if customers continue to engage in the way that they have been engaging with us. Catherine Spear: And I'll just add, I think that days between purchase is coming down, right? So people are coming back to us more because of our product, because of our brands and then also the normalization of the industry, right, where people need their uniforms, our health care community needs their uniforms over and over again. And so we're seeing really real success across the board across new, across repeat, across AOV, and it's really not one thing driving the success. Operator: Your next question comes from the line of Rick Patel with Raymond James. Rakesh Patel: On the strong results. I was hoping you could provide additional color around increasing frequency. So has the primary driver been customers coming back for core products like core scrubs? Or are they buying into the adjacent categories? Given your offerings are expanding with new scrub fabrication and a widening non-scrub assortment, I'd love to better understand what the primary driver of frequency is and just your expectations going forward in terms of where you're most optimistic? Catherine Spear: Yes, sure. So I think the repeat dynamics is what makes this industry so attractive. And I think what we've done is not just given the health care community what they need, but also what they want. And so that's really a big driver of the replenishment-driven dynamics of what we do. Coming out of the COVID overhang that we've discussed, that's only accelerated where frequency has accelerated. And you're seeing that in our scrubwear, up 27% for the quarter. You're also seeing it in non-scrubwear, up 40% in the quarter. And so if you think about the trajectory or the journey of a health care professional, they kind of come in on the core scrubs and then they maybe are getting an underscrub and then they're replenishing that their scrubwear again, trying out a limited edition style drop and then they're coming back and buying an outerwear piece, for instance, and then maybe they're coming back and getting their favorite Catarina top and Isabel Pant and new color or two new colors based on the latest drop. And so as you come back more to the brand and after your second, third, fourth, fifth purchase, you actually end up buying even more over time and buying more non-scrubwear over time. And so this is what's so phenomenal about our business. This is the beauty of FIGS is that we're not paying for people to come back. And as they come back to us more, they get more and more loyal. And so that's -- and it's our job to continue to drive that and help them be more and more engaged with the brand. We are maniacally obsessed with health care professionals, and they are just as obsessed with us and that will -- and we're going to continue to have that dialogue, share their story, show them new products, drive engagement and convert them to being a lifelong FIGS lover. Rakesh Patel: Can you also talk about your promotional strategy in the back half? Given the strong demand you're seeing on business as usual days, do you see room to pull back on discounts? Or do you think last year's calendar is a good proxy for what to expect this year? Sarah Oughtred: We're always monitoring that. We're continuing to see the outperformance in our business as usual days, which does give us the flexibility to pull back on promo if it makes sense. I think for now, our plan reflects a similar cadence to last year. And as I said, we're nimble. We're agile. We're continuing to monitor the consumer and what levers we need to pull. But for now, we will plan according to the promos that we did in 2H last year. So that includes our back-to-school event that is happening right now. And we always have had an exciting Black Friday, Cyber Monday. So we'll continue with those standard promos. Operator: Your next question comes from the line of Dana Telsey with Telsey Advisory Group. Dana Telsey: Congratulations, everyone, on the terrific results. So nice to see. Trina, as you think about the activation and the engagement, whether it's the Spider-Man movie or I think the Emmys talk slot you had last year, how do you think about the go forward? Are there new activations coming? How does it relate to product? On your website, I see some of the accessories and some of the jewelry on the website also. And should we see even more of this non-srubwear going forward? And how does it impact the margins? And just lastly, Sarah, on Jordan and what's happening with getting product and freight expenses, how do you think of the arrival of product? Does -- is there another region that replaces Jordan? Or where does that fit into the receipt of goods? Catherine Spear: Thank you, Dana. So yes, it's been incredible to see just a lot of these collaborations and activations really resonate with our community. I really see that with our continued collaboration with Star Wars. And then we had a newer collaboration with a Owala that crushed, I think we sold out in like, I don't know, less than a day. And then Spider-Man, which I mean it's the #1 Marvel franchise, which I wasn't even aware of. It's so killer and definitely exceeded even my expectations of what that would have done. So we always have new ideas. We have the best team. We have this world-class team that's always looking around and seeing what really makes sense for our brand, what really aligns with our community and what's going to get people super excited. And V Coterie, to your point, is another excellent example of listening to our community and giving them what they want and delivering beyond their expectations and once again, bringing the fun. And we just have the best creative team that's always thinking outside the box. And so really excited about what's to come in the second half of the year, what's to come in '27, '28. We never run out of ideas, but I'll pass it over to Sarah to handle all the other questions. Sarah Oughtred: Yes. So non-scrubwear does carry a lower margin. Right now, non-scrubwear is still under 20% of our business. So we are able to absorb that. We have shared that as we think about margins longer term, our profit expansion likely won't come from gross margins just given some of this mix shift that's happening, but we see the opportunity to more than offset that through the opportunities that we see with SG&A to continue to expand that profit margin in the years to come. Non-scrubwear is a great way for us to continue providing that full wardrobe for the health care professional. So we like what it does for engaging with that customer, continuing to drive that top line and really helping to fortify our position. And so we can manage the whole economic profile in the out years. Operator: Your next question comes from the line of Adrienne Yih with Barclays. Adrienne Yih-Tennant: I'll add my congratulations. It's really nice to see kind of the acceleration and the inflection. On that topic, this is 3 consecutive quarters north of 20%, 25% revenue growth. You've got the health care professional tailwind. You've got the active customer growth, you've got the RevPAC kind of growing double digits. Are we at -- or I should say -- maybe I'll ask it differently. Why should we not think that this is a new level of sort of double-digit top line growth -- and then can you speak to some of the marketing that you've done or did in the past to heavy up in the fourth quarter and Q1? What's the type of marketing is that? Is it brand awareness? And are we seeing some of the halo effect, the latent effect of that kind of flowing through and really starting to resonate? Catherine Spear: On the marketing front, I think we're really focusing on brand awareness and getting more of this community to know about us because once you know about FIGS, you love FIGS. And so I think that's a really interesting dynamic, right? We have 3.1 million active customers. There's 140 million health care professionals around the world. And so we have a relatively low market share overall. And so we're really focusing on those top-of-funnel campaigns. That's what you've seen, I would say, over the last few years now and getting more and more people to know about us and love us. We bring them from awareness to consideration to conversion. And so we're going to continue to do that. Sarah, do you want to take that first part? Sarah Oughtred: Certainly. We haven't given an outlook for 2027, but we are obviously coming out of Q4 with a 10% exit rate here. So throughout the year, we've continued to see like really strong metrics broad-based across all of our drivers that continues to give us quite a bit of conviction that there's still plenty of growth ahead of us and that we have the strategy [indiscernible] 15% growth in 2025 and now guiding to 20% growth in 2026. So seeing momentum continue ahead of us with everything that we've been building this year, more opportunities for growth drivers to contribute to a higher portion of that growth in 2027 and beyond. Adrienne Yih-Tennant: Great. And then for -- can you actually give a comparative metric on the brand awareness that you've built maybe today versus a year ago? And then Trina, this is sort of a rank order question for you. So as you think about the next 3 to 5 years, there's comp growth, right, based on those 3.1 active customers that you do have. But there's so many different vectors of non-comp growth, international, non-scrubwear teams, retail store rollout. Can you sort of rank order where you think the kind of near-term to longer-term drivers of that additional layer of growth could be? Sarah Oughtred: So in terms of our brand awareness, we've seen several point improvement year-to-date in all metrics, both in terms of our unaided awareness, our awareness, our consideration and we a lot of that to the amazing work that the brand is really doing to share about our brand and really have amazing storytelling that really connects with our health care professionals. So really pleased with those trends. The levels that we're at, we think there's definitely opportunity to continue to increase all of those. And we've got the right strategy to continue to go after that. Catherine Spear: And then as it relates to the next 3 to 5 years, and I guess what I'm most excited about, it's so hard to rank all my babies. But if I had to, I would say the biggest driver, and you're seeing it in the numbers is international, right? It grew 67% in the quarter. We're just seeing such incredible opportunity from all of these markets, but to see Mexico perform as it's performing, to see the EU, to see LatAm, to see a resurgence in Canada, Australia. I mean, it's just super exciting. And so we're really building for the long run internationally, just the way we did in the U.S., and it's working. If I were to then say, I really am excited about our hubs. We only have five stores. I mean think about some of the largest brands that were at our scale, the Nike and the Lululemons of the world. And I never like to compare ourselves to anybody. But at our scale and doing what we're doing essentially almost all digitally with only five stores is unprecedented. And so we just have so much opportunity. We are just getting started. We just talked about the four that are coming in the back half of this year, and that's super exciting. And so -- and they're performing. They're performing better than our expectations. And we've learned so much and now we're going to step on the gas. And then finally, TEAMS to see these large institutions like Bupa, like European Wax Center coming to FIGS and saying, we're going to spend hundreds of thousands, millions of dollars with you all to outfit our teams and professionalize and standardize our workforce. That's really exciting, too. So if I had to rank, that's how I would rank, but all early stages, all nascent in terms of what these will be for our business and all super exciting when we think about the future. Operator: Your next question comes from the line of Ashley Owens with KeyBanc Capital Markets. Ashley Owens: I'll add my congrats as well here. Maybe just to start, digging in on Jordan because that's been a big source of production for you guys in the past. So just trying to size a few things here. I guess, first, how many weeks or months of the Jordan-sourced core product do you already have sitting in the U.S. distribution center? And then second, what's the realistic time line to fully resource some of that volume to other countries such as Vietnam? And how confident are you that you can keep those core styles in stock to support some of these strong demand trends that you have been seeing? Catherine Spear: Sure. So sorry, can you just ask the question one more time? It cut out for a second. Ashley Owens: Yes. Sorry. First, how many weeks or months of the Jordan Source core products are in the U.S.? And then second, time line to fully resource that volume and confidence in the -- that you can keep the core styles in stock to support the demand that you've been seeing? Catherine Spear: Yes. No, I think it's a great question. And I think the challenge that we faced on this isn't new to us. Through COVID and the disruption in the Middle East, we've faced a wide range of challenges. And what you're referring to really is the strength and flexibility of the supply chain that we've built over the past 14 years that has allowed us to thrive regardless. So in terms of mitigation, right, and ensuring that our core styles are in stock, we've really worked cross-functionally and adapted to mitigate the disruption from the WRO. This includes leveraging capacity with many of our other strong partners that we have that we are expediting their production to meet our needs. We're in a really strong position to manage this because we were already in the process of derisking certain products and launches given the Middle East conflict, which you saw in the changes that we disclosed last quarter. So I'll say that we're in a good position, and we've mitigated the vast, vast majority of the challenge. And so -- and just a reminder, I think I talked about this, but we really are a supplier dream. We have this really high volume, low SKU count business. We have a replenishment-driven business that allows us to really be a great partner to our manufacturers. And so that's paying off now, right, where we are able to be nimble. We are able to move and get the capacity we need to meet the needs of our community. And I'll just say because this is really important, even with this, we're still raising our top and bottom line outlook. We're not just passing through our Q2 results. We're layering even more increased expectations beyond that. And to be clear, even if we would be in even a better position if it wasn't for this challenge, but we're highly confident in executing to both a second half and full year plan that is above what we communicated 3 months ago. Ashley Owens: Understood. Maybe just a follow-up with that because you are airfreighting a little bit, is that air freight cost effectively the full offset to the tariff benefit and expectations? Or are there expectations embedded that this persists through the second half? And then maybe just lastly to throw in a question on TEAMS here with the Bupa Dental Care win. But I guess to you, does this signal that TEAMS is starting to hit an inflection? And then I would be curious as to what the ramp in reorder cadence would be for an account of this size? Sarah Oughtred: So I think the way that I could map it out best really is our new adjusted EBITDA guide relative to our old guide. So we're picking up the refund related to the first half and our second half picks up the portion of refunds that was in inventory that will be realized in the second half. So that's over 100 basis points of improvement there. We are flowing through the benefit of Q2. We've then raised the back half of the year, and we're flowing that through. And then we have, yes, some offset from the air freight as well as opportunity to reinvest that flow through back into the business for opportunities where we see the ability to continue to drive growth. So we're being -- we are definitely passing through, and we are continuing to reinvest back in the business. And so many puts and takes, but we are flowing through. Operator: Your last question comes from the line of Nathan Feather with Morgan Stanley. Nathaniel Feather: My congrats as well, really phenomenal results here. I just want to dig in a little bit on the international marketing strategy that you're deploying. Interested here as you've seen such rapid scaling in that business, you try to increase the absolute dollar gains there. How are you thinking about the balance between more global marketing and getting the brand halo from the U.S. versus building awareness and then and building consideration in individual markets? And are you staffing up more localized teams to be able to do that more effectively? Sarah Oughtred: Nathan, thanks so much for the question. I think it really goes back to our go broad and go deep strategy, and that's really working. And so as a reminder, in our go deep markets, which are Canada, Australia, U.K. and Mexico, we're doing full funnel marketing, right? And we're really localizing our brand for that market and really bringing fun and engaging activations to these markets. We are -- that awareness and campaigns are driving interest in our brand, and it's bringing a lot of lower funnel efficiency as well. And so that's great to see. On the go broad side, which is a larger number of countries, obviously, we are testing, right? We are really focused on more of the lower funnel. We're building out our ambassador community in these markets. and that strategy is working. And as those markets gain scale, they earn the right, if you will, to become a part of our Go Deep strategy, where we're investing more dollars behind that. And I would say what we've learned a bit is a bit in these what we will call high potential markets, China, Japan, South Korea, France, Germany. These are markets where we're seeing -- and we're investing in more upper funnel to drive that brand awareness because we are seeing the impact. And so they're getting more of that marketing, and we're localizing as they scale. And so it's really amazing to see how these upper funnel efforts and our storytelling and our creative, which is really our secret sauce, right? It's why we have such a connection with our community globally how that is working on a local level around the world. And as we continue to go here, we're going to continue to execute on this. And we're profitable in almost every market that we're in. And so we're really seeing these efforts pay off. Operator: We have reached the end of the Q&A session. I will now turn the call back to Trina Spear, CEO, for closing remarks. Catherine Spear: Thank you so much. I just want to say fun fact, there are now more searches for FIGS than there are for scrubs, and that's when you know that you are on your way to owning a category like Kleenex, like Band-Aid, like Jacuzzi, that is where we're headed. So we're going to continue to execute at the highest level, and thank you so much for joining us. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Figs, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Figs wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Figs. The Motley Fool has a disclosure policy. FIGS (FIGS) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Wolverine World Wide, Inc. WWW reported solid second-quarter 2026 results, with both the top and bottom lines surpassing the Zacks Consensus Estimate. Revenues and earnings increased year over year.The company continued to benefit from strong momentum at its two largest brands, Merrell and Saucony, while progress at Wolverine and Sweaty Betty supported broader portfolio improvement. Management highlighted stronger brand execution, increased consumer demand and market share gains across key categories. The company raised its 2026 outlook, reflecting confidence in its growth trajectory and operating performance. As a result, shares of WWW increased 10% yesterday. Wolverine World Wide, Inc. price-consensus-eps-surprise-chart | Wolverine World Wide, Inc. Quote The company posted adjusted earnings of 40 cents a share, which beat the Zacks Consensus Estimate of 38 cents by 5.3%. The figure improved 14.3% from adjusted earnings of 35 cents in the prior-year quarter. At constant currency, earnings per share were 38 cents, up 8.6% from 35 cents in the prior-year quarter.Total revenues were $506.4 million, up 6.8% year over year on a reported basis. The top line surpassed the Zacks Consensus Estimate of $502 million by 0.8%. Growth was led by Merrell and Saucony, while wholesale revenues advanced 8% on a constant-currency basis.Direct-to-consumer revenues were $111.7 million, essentially flat year over year. WWW’s international business revenues increased 10.9% to $277.2 million.Regarding segments, Active Group revenues increased 9.3% year over year to $388.4 million. However, the segment’s revenues lagged the Zacks Consensus Estimate of $390.8 million. Work Group revenues declined 1.6% to $105.8 million and beat the consensus estimate of $105.7 million. Revenues of the Other segment increased 8.9% to $12.2 million. Also, the metric surpassed the consensus estimate of $11.2 million. Merrell revenues increased 11.1% year over year to $175.5 million or 10.3% on a constant-currency basis. Management cited healthy sell-through in core franchises, including the Moab 3, Moab Speed 2 and Agility Peak 6, along with strong international gains.Saucony revenues increased 9.9% to $158.6 million. The brand gained market share at U.S. run specialty and continued to build momentum across performance and lifestyle categories.Wolverine revenues climbed 6.6% to $39.6 million, supported by stronger key franchises and marketplace improvements.Sweaty Betty revenues declined 2.4% to $40.3 million amid the planned reset of its U.S. business, though management said the brand grew about 3% excluding that reset.The Zacks Consensus Estimate for revenues was pegged at $170.5 million for Merrell, $170.3 million for Saucony, $36.4 million for Wolverine and $39.2 million for Sweaty Betty. Gross profit was $235.3 million, up 5% year over year. Gross margin was 46.5%, down 70 basis points from 47.2% in the prior-year quarter. The decline primarily reflected the impact of higher U.S. tariffs, partially offset by price increases and other tariff mitigation initiatives.Adjusted operating costs increased 2.4% year over year to $184.9 million. As a percentage of revenues, adjusted operating expenses leveraged 40 basis points year over year.Adjusted operating profit increased 14.3% year over year to approximately $50.6 million, while the adjusted operating margin improved 80 basis points to 10%. Cash and cash equivalents were $158.5 million at quarter-end, compared with $141 million a year earlier. Net debt fell 22% year over year to $443 million, while long-term debt stood at $547.1 million.Inventory declined 17% year over year to $269.3 million. For the first half of fiscal 2026, operating cash flow was $3.4 million compared with an outflow of $39.2 million in the prior-year period. For the third quarter, revenues are projected to be between $495 million and $500 million, indicating approximately 5.8% reported growth at the midpoint versus the prior-year quarter. On a constant-currency basis, revenues are expected to increase 6.5% at the midpoint. The Active Group is anticipated to deliver high-single-digit growth, while the Work Group is expected to remain approximately flat year over year.The third-quarter gross margin is expected to be approximately 47.4%, down 10 basis points from the prior year. The outlook reflects an estimated unmitigated tariff impact of 180 basis points and a modest headwind from higher oil prices on freight costs. These pressures are expected to be largely offset by mitigation actions and other business initiatives.The adjusted operating margin is projected to be approximately 10.4%, an improvement of 130 basis points year over year, as revenue growth and disciplined cost management are expected to more than offset the impact of higher tariffs and elevated oil prices on gross margin. As a result, adjusted earnings per share are expected to range from 42 cents to 45 cents compared with 36 cents in the prior-year quarter. Wolverine Worldwide raised its 2026 revenue outlook to $1.98-$2 billion from the previous range of $1.96-$1.985 billion. The updated guidance represents reported revenue growth of approximately 6.2% at the midpoint. The company maintained its foreign currency assumption of an estimated $14 million benefit compared with the prior year.Fiscal 2025 included a 53rd week in the fourth quarter, which contributed approximately 70 basis points to full-year revenue growth, primarily within the direct-to-consumer business. Excluding the 53rd week and on a constant-currency basis, WWW expects revenues to increase approximately 6.1% at the midpoint. On a constant-currency basis, Active Group revenues are expected to increase at a high-single-digit rate, up from the prior mid-single-digit growth outlook. Work Group revenues are expected to remain approximately flat compared with 2025.At the brand level, the company raised its Saucony growth outlook to the mid-teens compared with the high end of its previous low- to mid-teens range. The company continues to expect Merrell revenues to grow at a mid-single-digit rate, while Sweaty Betty is expected to decline at a low-single-digit rate and Wolverine is projected to remain approximately flat compared with 2025.Gross margin is expected to be approximately 46.9%, up from the prior outlook of 46.4%. The improvement primarily reflects stronger marketplace execution, supply chain efficiencies and modestly lower tariffs. The updated guidance assumes existing tariff rates remain in place for the balance of 2026, reducing the estimated unmitigated tariff impact by approximately $2 million compared with the previous outlook. The guidance excludes any refund related to the $36 million of IEEPA tariffs previously paid. Adjusted operating margin is projected to be approximately 9.9%, compared with the prior outlook of 9.5%. The improvement reflects higher gross margin and meaningful operating leverage, partly offset by strategic investments in brands and key capabilities. As a result, adjusted earnings per share are expected to range from $1.55 to $1.65 compared with the previous range of $1.43-$1.58. WWW raised its operating free cash flow outlook to $115-$130 million from $105-$120 million previously. Capital expenditures are expected to remain approximately $20 million. WWW Stock Past Three-Month Performance Image Source: Zacks Investment Research Over the past three months, shares of this Zacks Rank #3 (Hold) company have gained 30.3% compared with the industry’s 1.3% growth. FIGS, Inc. FIGS is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 57.9% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.Boot Barn Holdings, Inc. BOOT is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also holds a Zacks Rank #2 at present. The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.Deckers Outdoor Corporation DECK is a designer, producer and brand manager of footwear, apparel and accessories for outdoor sports, performance activities and lifestyle use. It also carries a Zacks Rank #2.The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales suggests growth of 6.8% and 7.9%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 15.2%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wolverine World Wide, Inc. (WWW) : Free Stock Analysis Report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report FIGS, Inc. (FIGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Jack in the Box Inc. JACK posted operating earnings of 96 cents per share in the third quarter of fiscal 2026, down 7.7% from $1.04 a year ago, but beat the Zacks Consensus Estimate of 90 cents by 6.7%. Restaurant-level margin edged lower amid commodity inflation and a shift in restaurant mix. Janus Henderson Sustainable & Impact Core Bond ETF price-consensus-eps-surprise-chart | Janus Henderson Sustainable & Impact Core Bond ETF Quote Quarterly revenues fell 1.8% year over year to $257.7 million, missing the consensus mark of $260 million by 0.9%. Systemwide same-store sales declined 1.1%, as lower transactions were partly offset by higher pricing. Comparable sales remained negative, but the decline was smaller than in the prior-year quarter. Franchise same-store sales fell 1.2% versus a 7.2% decline a year ago, while company-operated comps decreased 0.9% compared with a 6.4% drop.At company-operated restaurants, average check rose 1%, while transactions declined 1.9%. Menu price increases were approximately 3.5% in the quarter. Systemwide restaurant sales fell to $944.1 million from $957.8 million a year earlier, with franchised restaurant sales decreasing to $847.8 million from $863.7 million. Company restaurant sales increased 2.3% to $96.3 million from $94.1 million. Franchise rental revenues declined 4.6% to $73 million, while franchise royalties and other revenues fell 3.4% to $43.1 million.Lower percentage rent, fewer franchised restaurants and lower lease termination fees weighed on rental revenues. Franchise-level margin was $60.4 million, or 37.4% of franchise revenues, versus $66.15 million, or 39.3%, a year ago, reflecting lower sales, fewer restaurants and higher bad debt expense. The system ended the fiscal third quarter with 2,115 restaurants after four openings and 17 closures. Restaurant-level margin was $16.99 million, or 17.6% of company restaurant sales, compared with $16.86 million, or 17.9%, a year earlier. Food and packaging costs rose to 29.3% of sales from 28.6%, as commodity inflation reached 5.4%, led by beef, tacos, produce and beverages.Payroll and employee benefit costs improved to 33.7% of sales from 34.5%, driven primarily by the rollover of additional federal unemployment taxes in California, partly offset by restaurant mix and 1.8% labor inflation. Occupancy and other costs rose 30 basis points to 19.3%, reflecting sales deleverage, higher rent and increased third-party delivery fees. Selling, general and administrative expenses declined to $17 million from $20.5 million. Lower legal costs from a litigation reversal and lower stock-based compensation due to forfeitures more than offset an unfavorable $4.20 million swing in company-owned life insurance policy values and higher incentive compensation.Other operating income, net, was $3.1 million versus other operating expense of $4.5 million a year ago, primarily backed by higher gains on real estate sales. Adjusted EBITDA increased to $61.20 million from $57.15 million. Debt management remained a key capital allocation priority. During the quarter, JACK prepaid $110 million of its Series 2019-1 Class A-2-II notes using excess company-owned life insurance funding and cash on hand. The company also issued $500 million of Series 2026-1 Class A-2 notes and used the proceeds to refinance portions of existing securitized debt.Total debt stood at $1.43 billion at quarter-end. Cash and restricted cash totaled $71.8 million. Year-to-date cash flow from operating activities was $56.6 million compared with $118.2 million a year earlier, while capital expenditures totaled $44.1 million. Management updated fiscal 2026 guidance to a restaurant count of approximately 2,100, including about 25 openings and 50 to 60 closures, most of them franchised. Company-owned restaurant-level margin is projected at approximately 16.5%, incorporating mid-single-digit commodity inflation and low-single-digit wage inflation.Franchise-level margin is expected to be approximately $265 million. SG&A is forecast at $112 million to $115 million, while adjusted EBITDA is projected at $225 million to $230 million. The company maintained its low-single-digit same-store sales decline outlook and capital expenditure guidance of $45 million to $55 million. Jack in the Box currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Retail-Wholesale sector have been discussed below.BJ's Restaurants, Inc. BJRI currently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 127.9%, on average. BJRI stock has surged 76.2% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for BJ's Restaurants’ 2026 sales and EPS indicates year-over-year growth of 4% each.Five Below, Inc. FIVE presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 70.1%, on average. FIVE stock has gained 29.6% year to date.The Zacks Consensus Estimate for Five Below’s 2027 sales and EPS indicates growth of 15.1% and 36.1%, respectively, from the year-ago period’s levels. FIGS, Inc. FIGS has a Zacks Rank #2 at present. The company delivered a trailing four-quarter earnings surprise of 201.8%, on average. FIGS stock has risen 26.8% year to date. The Zacks Consensus Estimate for FIGS’ 2026 sales and EPS indicates growth of 18.2% and 57.9%, respectively, from the prior-year levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Janus Henderson Sustainable & Impact Core Bond ETF (JACK) : Free Stock Analysis Report BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report Five Below, Inc. (FIVE) : Free Stock Analysis Report FIGS, Inc. (FIGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research