<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Figs beat on sales and beat on earnings last night. Today, it sold off anyway.</li><li>Guidance calls for Q1 sales growth to slow dramatically later in the year.</li><li>10 stocks we like better than Figs ›</li></ul>Pull out the crash cart -- Figs (NYSE: FIGS) is on life support.The popular purveyor of medical and surgical scrubs and other apparel took a huge tumble on Friday, crashing 29.4% through 10:40 a.m. ET despite beating analyst forecasts for both sales and earnings last night.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »Heading into its Q1 report, analysts forecast Figs to earn $0.01 per share on $152.5 million in sales. Figs actually earned $0.03 per share and reported sales of $159.9 million. <img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2OTI0NS9iZWFyLWluLWEtc3VpdC1hZ2FpbnN0LWEtZmllbGQtb2YtcmVkLWFycm93cy1hbmQtZmFsbGluZy1zdG9jay1wcmljZXMtaW1hZ2UtY3JlYXRlZC1ieS1qZXN0ZXJhaS5wbmcmdz03MDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="512" height="512" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2OTI0NS9iZWFyLWluLWEtc3VpdC1hZ2FpbnN0LWEtZmllbGQtb2YtcmVkLWFycm93cy1hbmQtZmFsbGluZy1zdG9jay1wcmljZXMtaW1hZ2UtY3JlYXRlZC1ieS1qZXN0ZXJhaS5wbmcmdz03MDA"/>Image created by JesterAI. <h2>Figs Q1 earnings</h2>So good news, right? Investors should be happy? Except they aren't -- and guidance seems to be the reason. In Q1, Figs grew sales a strong 28%, with scrubwear sales up 27% and non-scrubwear up an even better 31%. Figs improved its gross profit margin (albeit only by 0.1%). It grew operating costs slower than sales (up only 23%). Figs even flipped from a small net loss a year ago, to $0.03 in profits this time -- an earnings growth rate of infinity!But when it came time to give guidance, the most Figs would promise for 2026 was sales growth of 14% to 16%.<h2>Is this good or bad for Figs?</h2>I get why investors are spooked. Figs grew 28% in Q1, but promised barely half that growth over the course of the rest of the year -- but here's the thing:Wall Street is only expecting Figs to grow its sales by 12% this year. Investors may be upset that 14% is less than 28%, sure. But it's also comfortably ahead of 12%, and that means Figs just promised to beat earnings this year. That sounds like good news to me. If it were a lot cheaper than its current 73.5 price-to-earnings ratio, I might even buy Figs stock.<h2>Should you buy stock in Figs right now?</h2> 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 $475,926!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,296,608!* Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 205% for the S&amp;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 May 8, 2026. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

FIGS

Figs (NYSE: FIGS) experienced a significant stock crash of 29.4% despite reporting better-than-expected earnings and sales. The company earned $0.03 per share on $159.9 million in sales, surpassing analyst forecasts. However, guidance for future sales growth is concerning, with projections of only 14% to 16% growth for the year, down from 28% in Q1. This has led to investor disappointment, as the expected growth is still above Wall Street's forecast of 12%. Figs is currently facing scrutiny, and analysts suggest considering other investment options.

Why Figs Stock Crashed Today