FIGS (FIGS) 10-Q 4 May 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2023	Apr. 30, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-40448
Entity Registrant Name	FIGS, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-2005653
Entity Address, Address Line One	2834 Colorado Avenue
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Santa Monica
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90404
City Area Code	424
Local Phone Number	300-8330
Title of 12(b) Security	Class A common stock, $0.0001 par value per share
Trading Symbol	FIGS
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001846576
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		159,613,628
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		7,482,014

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 155,877	$ 159,775
Accounts receivable	3,781	6,866
Inventory, net	180,373	177,976
Prepaid expenses and other current assets	9,580	11,883
Total current assets	349,611	356,500
Non-current assets
Property and equipment, net	11,241	11,024
Operating lease right-of-use assets	14,646	15,312
Deferred tax assets	11,411	10,971
Other assets	1,195	1,257
Total non-current assets	38,493	38,564
Total assets	388,104	395,064
Current liabilities
Accounts payable	8,571	20,906
Operating lease liabilities	3,437	3,408
Accrued expenses	21,270	26,164
Accrued compensation and benefits	3,646	3,415
Sales tax payable	3,706	3,374
Gift card liability	7,531	7,882
Deferred revenue	706	2,786
Returns reserve	3,502	3,458
Income tax payable	382	0
Total current liabilities	52,751	71,393
Non-current liabilities
Operating lease liabilities, non-current	14,984	15,756
Other non-current liabilities	176	176
Total liabilities	67,911	87,325
Commitments and contingencies (Note 8)
Stockholders’ equity
Preferred stock — par value $0.0001 per share, 100,000,000 shares authorized as of March 31, 2023 and December 31, 2022; zero shares issued and outstanding as of March 31, 2023 and December 31, 2022	0	0
Additional paid-in capital	279,151	268,606
Retained earnings	41,026	39,117
Total stockholders’ equity	320,193	307,739
Total liabilities and stockholders’ equity	388,104	395,064
Class A Common Stock
Stockholders’ equity
Common stock	16	16
Class B Common Stock
Stockholders’ equity
Common stock	$ 0	$ 0

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Preferred stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares outstanding (in shares)	0	0
Preferred stock, shares issued (in shares)	0	0
Class A Common Stock
Common stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares, issued (in shares)	159,576,825	159,351,307
Common stock, shares, outstanding (in shares)	159,576,825	159,351,307
Class B Common Stock
Common stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares, issued (in shares)	7,482,014	7,210,795
Common stock, shares, outstanding (in shares)	7,482,014	7,210,795

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net revenues	$ 120,232	$ 110,100
Cost of goods sold	34,556	31,670
Gross profit	85,676	78,430
Operating expenses
Selling	31,158	22,058
Marketing	17,064	15,408
General and administrative	34,157	27,219
Total operating expenses	82,379	64,685
Net income from operations	3,297	13,745
Other income, net
Interest income	1,072	9
Other expense	(1)	(1)
Total other income, net	1,071	8
Net income before provision for income taxes	4,368	13,753
Provision for income taxes	2,459	4,854
Net income and comprehensive income	$ 1,909	$ 8,899
Earnings per share:
Basic earnings per share (in USD per share)	$ 0.01	$ 0.05
Diluted earnings per share (in USD per share)	$ 0.01	$ 0.05
Weighted Average Number of Shares Outstanding
Weighted-average shares outstanding—basic (in shares)	166,773,335	164,406,142
Weighted-average shares outstanding - diluted (in shares)	182,853,746	193,379,275

CONDENSED STATEMENTS OF STOCKHO

CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock Class A Common Stock	Common Stock Class A Common Stock Issuance of Class B Common Stock upon exchange of Class A Common Stock	Common Stock Class A Common Stock Issuance of Class A Common Stock upon exchange of Class B Common Stock	Common Stock Class B Common Stock	Common Stock Class B Common Stock Issuance of Class B Common Stock upon exchange of Class A Common Stock	Common Stock Class B Common Stock Issuance of Class A Common Stock upon exchange of Class B Common Stock	Additional Paid-in Capital	Retained Earnings
Beginning Balance (in shares) at Dec. 31, 2021		152,098,257			12,158,187
Beginning Balance at Dec. 31, 2021	$ 245,573	$ 15			$ 1			$ 227,626	$ 17,931
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of Class A Common Stock upon vesting of Restricted Stock, net of tax withholdings (in shares)		381,973
Issuance of stock upon exchange of stock (in shares)			(338,152)	6,300,000		338,152	(6,300,000)
Stock-based compensation	8,477							8,477
Stock option exercises (in shares)		88,610
Stock option exercises	352							352
Net income	8,899								8,899
Ending balance (in shares) at Mar. 31, 2022		158,530,688			6,196,339
Ending Balance at Mar. 31, 2022	263,301	$ 15			$ 1			236,455	26,830
Beginning Balance (in shares) at Dec. 31, 2022		159,351,307			7,210,795
Beginning Balance at Dec. 31, 2022	307,739	$ 16			$ 0			268,606	39,117
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of Class A Common Stock upon vesting of Restricted Stock, net of tax withholdings (in shares)		494,487
Issuance of stock upon exchange of stock (in shares)			(271,219)	0		271,219	0
Restricted Stock surrendered for employee's tax liability	(246)							(246)
Stock-based compensation	10,790							10,790
Stock option exercises (in shares)		2,250
Stock option exercises	1							1
Net income	1,909								1,909
Ending balance (in shares) at Mar. 31, 2023		159,576,825			7,482,014
Ending Balance at Mar. 31, 2023	$ 320,193	$ 16			$ 0			$ 279,151	$ 41,026

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net income	$ 1,909	$ 8,899
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and Amortization Expense	659	375
Deferred income taxes	(440)	(406)
Non-cash operating lease cost	666	374
Stock-based compensation	10,790	8,477
Changes in operating assets and liabilities:
Accounts receivable	3,085	(469)
Inventory	(2,397)	(16,697)
Prepaid expenses and other current assets	2,303	(3,857)
Other assets	62	(185)
Accounts payable	(12,439)	2,372
Accrued expenses	(4,894)	(560)
Accrued compensation and benefits	231	(2,371)
Sales tax payable	332	607
Gift card liability	(351)	(315)
Deferred revenue	(2,080)	9
Returns reserve	44	(233)
Income tax payable	382	(3,648)
Operating lease liabilities	(743)	(389)
Net cash used in operating activities	(2,881)	(8,017)
Cash flows from investing activities:
Purchases of property and equipment	(772)	(364)
Net cash used in investing activities	(772)	(364)
Cash flows from financing activities:
Proceeds from stock option exercises and employee stock purchases	1	352
Tax payments related to net share settlements on restricted stock units	(246)	0
Net cash (used in) provided by financing activities	(245)	352
Net change in cash, cash equivalents, and restricted cash	(3,898)	(8,029)
Cash, cash equivalents, and restricted cash, beginning of period	159,775	197,430
Cash, cash equivalents, end of period	155,877	189,401
Supplemental disclosures:
Property and equipment included in accounts payable and accrued expenses	$ 123	$ 149

Description of Business

Description of Business	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	DESCRIPTION OF BUSINESSFIGS, Inc. (the “Company”), a Delaware corporation, was founded in 2013 and is a founder-led, direct-to-consumer healthcare apparel and lifestyle brand company. The Company designs and sells scrubwear, and other non-scrub offerings, such as lab coats, underscrubs, outerwear, activewear, loungewear, compression socks and footwear. The Company markets and sells its products primarily in the United States. Sales are primarily generated through the Company’s digital platforms.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. The Company’s fiscal year ends on December 31. Certain information and footnote disclosures normally included in the Company’s annual audited financial statements and accompanying notes have been condensed or omitted in these accompanying interim condensed financial statements and footnotes. These unaudited condensed financial statements should be read in conjunction with the audited financial statements and related notes for the year ended December 31, 2022, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2023. In the opinion of management, the unaudited condensed financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of the Company’s financial position, results of operations, and cash flows. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods presented. Significant estimates include, but are not limited to, the valuation of the net realizable value of inventory, reserves for sales returns, allowances for doubtful accounts, stock-based compensation, contingent sales tax liability, and the useful lives and recoverability of long-lived assets. Actual results could differ from those estimates. Inventory, Net Inventory consists of finished goods and is accounted for using an average cost method. Inventory is valued at the lower of cost or net realizable value. The Company records a provision for excess and obsolete inventory to adjust the carrying value of inventory based on assumptions regarding future demand for the Company’s products. Lower of cost or net realizable value is evaluated by considering obsolescence, excessive levels of inventory, deterioration, and other factors. Adjustments to reduce the cost of inventory to its net realizable value, if required, are made for estimated excess, obsolescence, or impaired inventory. Excess and obsolete inventory is charged to cost of goods sold. The Company’s allowance to write down inventory to the lower of cost or net realizable value was not material as of March 31, 2023 and December 31, 2022. Revenue Recognition The Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standard Updates (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”). Revenue is recognized in an amount that reflects the consideration expected to be received in exchange for products. To determine revenue recognition for contracts with customers within the scope of ASC 606, the Company recognizes revenue from the commercial sales of products and contracts by applying the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations of the contract(s); (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract(s); and (v) recognize revenue when (or as) the Company satisfies the performance obligations. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the good or services it transfers to the customer. The Company recognizes revenue at a point in time when it satisfies a performance obligation and transfers control of the products to the respective customers, which occurs when the goods are transferred to a common carrier. Shipping and handling costs associated with outbound freight incurred to transfer a product to a customer are treated as a fulfillment activity, and as a result, any fees received from customers are included in the transaction price for the performance obligation of providing goods to the customer. The Company generally provides refunds for goods returned within 30 days from the original purchase date. A returns reserve is recorded by the Company based on the historical refund pattern. The returns reserve on the condensed balance sheets was $3.5 million as of March 31, 2023 and December 31, 2022. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. The Company records deferred revenue when it receives payments in advance of the transfer of the goods to a common carrier. The amounts recorded are expected to be recognized as revenue within the 12 months following the balance sheet date and, therefore, are classified as current liabilities on the Company’s condensed balance sheets. The Company does not have significant contract balances other than deferred revenue, the allowance for sales returns and liabilities related to its gift cards. The Company recognized revenues of $2.7 million during the three months ended March 31, 2023 related to the deferred revenue balance that existed at December 31, 2022. The Company does not have significant contract acquisition costs. The following table presents the disaggregation of the Company’s net revenues for the three months ended March 31, 2023 and 2022 as follows (in thousands): Three months ended 2023 2022 By geography: United States $ 107,680 $ 101,418 Rest of the world 12,552 8,682 $ 120,232 $ 110,100 By product: Scrubwear $ 97,866 $ 90,467 Non-Scrubwear 22,366 19,633 $ 120,232 $ 110,100

Fair Value of Financial Assets

Fair Value of Financial Assets and Liabilities	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES	FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIESAs of March 31, 2023, and December 31, 2022, the Company’s cash equivalents consisted of highly liquid investments with original maturities of 90 days or less from the date of purchase. These investments are classified as available-for-sale and consist of Level 1 financial assets, which include money market funds and U.S. Treasury securities, and Level 2 financial assets, which include commercial paper. Assets and liabilities measured at fair value are classified into the following categories: • Level 1: Quoted market prices in active markets for identical assets or liabilities. • Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. The Company's cash equivalents are classified within Level 1 or Level 2 of the fair value hierarchy because their fair values are derived from quoted market prices or alternative pricing sources and models utilizing observable market inputs. The following table summarizes the Company’s financial assets measured at fair value on a recurring basis (in thousands): Fair Value Measurement as of Level 1 Level 2 Level 3 Total Assets Money market funds $ 83,623 $ — $ — $ 83,623 U.S. Treasury securities 21,123 — — 21,123 Corporate paper — 29,279 — 29,279 $ 104,746 $ 29,279 $ — $ 134,025 Fair Value Measurement as of Level 1 Level 2 Level 3 Total Assets Money market funds $ 102,908 $ — $ — $ 102,908 $ 102,908 $ — $ — $ 102,908 Gross unrealized gains and gross unrealized losses related to the Company's short-term investments were not material as of March 31, 2022. There have been no transfers of assets between fair value levels during the periods presented. The carrying values of other current assets, accounts payable and accrued expenses approximate their fair values due to the short-term nature of these assets and liabilities.

Accounts Receivable

Accounts Receivable	3 Months Ended
	Mar. 31, 2023
Receivables [Abstract]
ACCOUNTS RECEIVABLE	ACCOUNTS RECEIVABLE Accounts receivable consisted of the following (in thousands): March 31, December 31, Trade $ 3,117 $ 6,288 Other 664 578 $ 3,781 $ 6,866

Property and Equipment, Net

Property and Equipment, Net	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following (in thousands): March 31, December 31, Furniture and fixtures $ 1,203 $ 1,189 Office equipment 953 937 Machinery and equipment 2,735 2,853 Computer equipment 1,723 1,486 Software and website design 6,620 6,209 Leasehold improvements 3,126 3,126 Capital projects in progress 327 11 Total property and equipment 16,687 15,811 Less: accumulated depreciation and amortization (5,446) (4,787) Property and equipment, net $ 11,241 $ 11,024

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2023
Payables and Accruals [Abstract]
ACCRUED EXPENSES	ACCRUED EXPENSES Accrued expenses consisted of the following (in thousands): March 31, December 31, Accrued inventory $ 5,389 $ 8,906 Accrued shipping 2,299 2,149 Accrued selling expenses 8,361 10,648 Accrued legal expenses 145 395 Accrued marketing expenses 3,350 1,747 Other accrued expenses 1,726 2,319 $ 21,270 $ 26,164

Financing Arrangements

Financing Arrangements	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
FINANCING ARRANGEMENTS	FINANCING ARRANGEMENTS On September 7, 2021, the Company, as borrower, entered into a credit agreement with Bank of America, N.A. for a $100.0 million revolving credit facility, including capacity to issue letters of credit (the “2021 Facility”). The 2021 Facility is secured by substantially all assets of the Company and its material subsidiaries, subject to customary exceptions. The 2021 Facility has a maturity date of September 7, 2026 (“2021 Facility Maturity Date”). As of March 31, 2023, the Company had letters of credit aggregating to $4.4 million outstanding under the 2021 Facility and available borrowings of $95.6 million. As of March 31, 2023, the Company had no outstanding borrowings under the 2021 Facility. Borrowings under the 2021 Facility are payable on the 2021 Facility Maturity Date. Borrowings bear interest at either (a) the Eurodollar Rate (as defined in the 2021 Facility) plus 1.125% or (b) the Base Rate (as defined in the 2021 Facility) plus 0.125%. The interest rate for undrawn amounts is 0.175%. Costs associated with entering into the 2021 Facility were not material. On February 27, 2023, the Company entered into a first amendment (the “First Amendment”) to the 2021 Facility. The First Amendment amends the Credit Agreement to replace the London interbank offered rate (“LIBOR”) with a term rate based on the Secured Overnight Financing Rate (“SOFR”), together with certain administrative changes to facilitate such replacement. Except as amended by the First Amendment, the terms of the Credit Agreement remain in full force and effect.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Taxes on Remote Sellers The Company is subject to state laws or administrative practices with respect to taxes on remote sellers. In accordance with ASC 450, Contingencies, the Company recorded $1.6 million within sales tax payable on the Company’s condensed balance sheets as of March 31, 2023, and December 31, 2022, as an estimate of contingent sales tax payable. Inventory Purchase Obligations Inventory purchase obligations as of March 31, 2023 were $33.8 million. These inventory purchase obligations can be impacted by various factors, including the timing of issuing orders and the timing of the shipment of orders. Legal Contingencies Legal claims may arise from time to time in the normal course of business, the results of which may have a material effect on the Company’s accompanying unaudited condensed financial statements. The Company currently has a legal action against it with respect to a putative securities class action against the Company and certain of its executive officers and directors. The Company intends to vigorously defend against such claims. Accordingly, an accrual for any potential liability has not been recorded.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The tax provision for interim periods is determined using an estimate of the Company’s annual effective tax rate, adjusted for discrete items arising during interim periods. For the three months ended March 31, 2023 and 2022, the Company’s effective tax rate was 56.3% and 35.3%, respectively. The Company’s effective tax rate differed from the U.S. statutory tax rate primarily due to state taxes and officer excess compensation limitations. For the three months ended March 31, 2023 and 2022, the Company recorded income tax expense of $2.5 million and $4.9 million, respectively. On August 16, 2022, the U.S. government enacted the Inflation Reduction Act of 2022 (“IRA”), which, among other things, implements a 15% alternative minimum tax on corporations with book income in excess of $1 billion, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy effective January 1, 2023. The provisions of the IRA did not have an impact to the Company's financial statements. The Company will continue to monitor for updates to the Company’s business along with guidance issued with respect to the IRA to determine whether any adjustments are needed to the Company’s tax provision in future periods.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE Basic earnings per share (“basic EPS”) and diluted earnings per share (“diluted EPS”) attributable to common stockholders is calculated in conformity with the two-class method required for participating securities: Class A and Class B common stock. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to twenty votes per share. Each share of Class B common stock is convertible at any time at the option of the stockholder into one share of Class A common stock. Basic EPS attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period. For the calculation of diluted EPS, net income attributable to common stockholders for basic EPS is adjusted by the effect of dilutive securities. Diluted EPS attributable to common stockholders is computed by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding, including all potentially dilutive common shares. As the economic rights of Class A and Class B common stock are identical, undistributed earnings are allocated on a proportionate basis and presented on a combined basis. The following table sets forth the computation of basic and diluted EPS and a reconciliation of the weighted average number of common and common equivalent shares outstanding for the three months ended March 31, 2023 and 2022 (in thousands, except share and per share amounts): Three months ended March 31, 2023 2022 Numerator: Net income $ 1,909 $ 8,899 Denominator: Weighted-average shares—basic 166,773,335 164,406,142 Effect of dilutive stock options 14,843,572 26,559,931 Effect of dilutive restricted stock 1,236,839 2,413,202 Weighted-average shares—diluted 182,853,746 193,379,275 Earnings per share: Basic earnings per share $ 0.01 $ 0.05 Effect of dilutive stock options and restricted stock — — Diluted earnings per share $ 0.01 $ 0.05 The Company excluded the following weighted average common equivalent shares from the computation of diluted earnings per share for the three months ended March 31, 2023 and 2022 because including them would have had an anti-dilutive effect: Three months ended March 31, 2023 2022 Stock options to purchase common stock 9,074,968 3,161,837 Restricted stock units 1,757,455 1,021,834

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. The Company’s fiscal year ends on December 31. Certain information and footnote disclosures normally included in the Company’s annual audited financial statements and accompanying notes have been condensed or omitted in these accompanying interim condensed financial statements and footnotes. These unaudited condensed financial statements should be read in conjunction with the audited financial statements and related notes for the year ended December 31, 2022, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2023. In the opinion of management, the unaudited condensed financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of the Company’s financial position, results of operations, and cash flows. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods presented. Significant estimates include, but are not limited to, the valuation of the net realizable value of inventory, reserves for sales returns, allowances for doubtful accounts, stock-based compensation, contingent sales tax liability, and the useful lives and recoverability of long-lived assets. Actual results could differ from those estimates.
Inventory, Net	Inventory, Net Inventory consists of finished goods and is accounted for using an average cost method. Inventory is valued at the lower of cost or net realizable value. The Company records a provision for excess and obsolete inventory to adjust the carrying value of inventory based on assumptions regarding future demand for the Company’s products. Lower of cost or net realizable value is evaluated by considering obsolescence, excessive levels of inventory, deterioration, and other factors. Adjustments to reduce the cost of inventory to its net realizable value, if required, are made for estimated excess, obsolescence, or impaired inventory. Excess and obsolete inventory is charged to cost of goods sold.
Revenue Recognition	Revenue Recognition The Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standard Updates (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”). Revenue is recognized in an amount that reflects the consideration expected to be received in exchange for products. To determine revenue recognition for contracts with customers within the scope of ASC 606, the Company recognizes revenue from the commercial sales of products and contracts by applying the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations of the contract(s); (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract(s); and (v) recognize revenue when (or as) the Company satisfies the performance obligations. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the good or services it transfers to the customer. The Company recognizes revenue at a point in time when it satisfies a performance obligation and transfers control of the products to the respective customers, which occurs when the goods are transferred to a common carrier. Shipping and handling costs associated with outbound freight incurred to transfer a product to a customer are treated as a fulfillment activity, and as a result, any fees received from customers are included in the transaction price for the performance obligation of providing goods to the customer. The Company generally provides refunds for goods returned within 30 days from the original purchase date. A returns reserve is recorded by the Company based on the historical refund pattern. The returns reserve on the condensed balance sheets was $3.5 million as of March 31, 2023 and December 31, 2022. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. The Company records deferred revenue when it receives payments in advance of the transfer of the goods to a common carrier. The amounts recorded are expected to be recognized as revenue within the 12 months following the balance sheet date and, therefore, are classified as current liabilities on the Company’s condensed balance sheets. The Company does not have significant contract balances other than deferred revenue, the allowance for sales returns and liabilities related to its gift cards. The Company recognized revenues of $2.7 million during the three months ended March 31, 2023 related to the deferred revenue balance that existed at December 31, 2022. The Company does not have significant contract acquisition costs.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Schedule of Disaggregation of Revenue	The following table presents the disaggregation of the Company’s net revenues for the three months ended March 31, 2023 and 2022 as follows (in thousands): Three months ended 2023 2022 By geography: United States $ 107,680 $ 101,418 Rest of the world 12,552 8,682 $ 120,232 $ 110,100 By product: Scrubwear $ 97,866 $ 90,467 Non-Scrubwear 22,366 19,633 $ 120,232 $ 110,100

Fair Value of Financial Asset_2

Fair Value of Financial Assets and Liabilities (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Schedule of Assets Measured at Fair Value	The following table summarizes the Company’s financial assets measured at fair value on a recurring basis (in thousands): Fair Value Measurement as of Level 1 Level 2 Level 3 Total Assets Money market funds $ 83,623 $ — $ — $ 83,623 U.S. Treasury securities 21,123 — — 21,123 Corporate paper — 29,279 — 29,279 $ 104,746 $ 29,279 $ — $ 134,025 Fair Value Measurement as of Level 1 Level 2 Level 3 Total Assets Money market funds $ 102,908 $ — $ — $ 102,908 $ 102,908 $ — $ — $ 102,908

Accounts Receivable (Tables)

Accounts Receivable (Tables)	3 Months Ended
	Mar. 31, 2023
Receivables [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable	Accounts receivable consisted of the following (in thousands): March 31, December 31, Trade $ 3,117 $ 6,288 Other 664 578 $ 3,781 $ 6,866

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment, Net	Property and equipment, net consisted of the following (in thousands): March 31, December 31, Furniture and fixtures $ 1,203 $ 1,189 Office equipment 953 937 Machinery and equipment 2,735 2,853 Computer equipment 1,723 1,486 Software and website design 6,620 6,209 Leasehold improvements 3,126 3,126 Capital projects in progress 327 11 Total property and equipment 16,687 15,811 Less: accumulated depreciation and amortization (5,446) (4,787) Property and equipment, net $ 11,241 $ 11,024

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2023
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses consisted of the following (in thousands): March 31, December 31, Accrued inventory $ 5,389 $ 8,906 Accrued shipping 2,299 2,149 Accrued selling expenses 8,361 10,648 Accrued legal expenses 145 395 Accrued marketing expenses 3,350 1,747 Other accrued expenses 1,726 2,319 $ 21,270 $ 26,164

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the computation of basic and diluted EPS and a reconciliation of the weighted average number of common and common equivalent shares outstanding for the three months ended March 31, 2023 and 2022 (in thousands, except share and per share amounts): Three months ended March 31, 2023 2022 Numerator: Net income $ 1,909 $ 8,899 Denominator: Weighted-average shares—basic 166,773,335 164,406,142 Effect of dilutive stock options 14,843,572 26,559,931 Effect of dilutive restricted stock 1,236,839 2,413,202 Weighted-average shares—diluted 182,853,746 193,379,275 Earnings per share: Basic earnings per share $ 0.01 $ 0.05 Effect of dilutive stock options and restricted stock — — Diluted earnings per share $ 0.01 $ 0.05
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The Company excluded the following weighted average common equivalent shares from the computation of diluted earnings per share for the three months ended March 31, 2023 and 2022 because including them would have had an anti-dilutive effect: Three months ended March 31, 2023 2022 Stock options to purchase common stock 9,074,968 3,161,837 Restricted stock units 1,757,455 1,021,834

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Product return, refund period (in days)	30 days
Returns reserve	$ 3,502	$ 3,458
Operating lease right-of-use assets	14,646	$ 15,312
Deferred revenue, revenue recognized	$ 2,700

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Disaggregation of the Company's Net Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation Of Revenue [Line Items]
Net revenues	$ 120,232	$ 110,100
Scrubwear
Disaggregation Of Revenue [Line Items]
Net revenues	97,866	90,467
Non-Scrubwear
Disaggregation Of Revenue [Line Items]
Net revenues	22,366	19,633
United States
Disaggregation Of Revenue [Line Items]
Net revenues	107,680	101,418
Rest of the world
Disaggregation Of Revenue [Line Items]
Net revenues	$ 12,552	$ 8,682

Fair Value of Financial Asset_3

Fair Value of Financial Assets and Liabilities - Schedule of Assets Measured at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Money market funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Corporate paper	$ 21,123
Money market funds | Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Corporate paper	21,123
Money market funds | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Corporate paper	0
Money market funds | Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Corporate paper	0
U.S. Treasury securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Corporate paper	83,623	$ 102,908
Assets fair value	134,025	102,908
U.S. Treasury securities | Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Corporate paper	83,623	102,908
Assets fair value	104,746	102,908
U.S. Treasury securities | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Corporate paper	0	0
Assets fair value	29,279	0
U.S. Treasury securities | Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Corporate paper	0	0
Assets fair value	0	$ 0
Corporate paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Corporate paper	29,279
Corporate paper | Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Corporate paper	0
Corporate paper | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Corporate paper	29,279
Corporate paper | Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Corporate paper	$ 0

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Receivables [Abstract]
Trade	$ 3,117	$ 6,288
Other	664	578
Accounts receivable	$ 3,781	$ 6,866

Property and Equipment, Net - S

Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property Plant And Equipment [Line Items]
Total property and equipment	$ 16,687	$ 15,811
Less: accumulated depreciation and amortization	(5,446)	(4,787)
Property and equipment, net	11,241	11,024
Furniture and fixtures
Property Plant And Equipment [Line Items]
Total property and equipment	1,203	1,189
Office equipment
Property Plant And Equipment [Line Items]
Total property and equipment	953	937
Machinery and equipment
Property Plant And Equipment [Line Items]
Total property and equipment	2,735	2,853
Computer equipment
Property Plant And Equipment [Line Items]
Total property and equipment	1,723	1,486
Software and website design
Property Plant And Equipment [Line Items]
Total property and equipment	6,620	6,209
Leasehold improvements
Property Plant And Equipment [Line Items]
Total property and equipment	3,126	3,126
Capital projects in progress
Property Plant And Equipment [Line Items]
Total property and equipment	$ 327	$ 11

Property and Equipment, Net - A

Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation	$ 0.7	$ 0.4

Accrued Expenses - Schedule of

Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued inventory	$ 5,389	$ 8,906
Accrued shipping	2,299	2,149
Accrued selling expenses	8,361	10,648
Accrued legal expenses	145	395
Accrued marketing expenses	3,350	1,747
Other accrued expenses	1,726	2,319
Total accrued expenses	$ 21,270	$ 26,164

Financing Arrangements - Additi

Financing Arrangements - Additional Information (Details) - Bank of America, N.A. - USD ($)	3 Months Ended
	Mar. 31, 2023	Sep. 07, 2021
Revolving Credit Facility
Line Of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity		$ 100,000,000
Debt instrument, basis spread on variable rate	1.125%
Amount outstanding	$ 0
Outstanding borrowings under existing credit facility	$ 95,600,000
Unused commitment fee (as a percent)	0.175%
Revolving Credit Facility | Base Rate
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	0.125%
Letter of Credit
Line Of Credit Facility [Line Items]
Amount outstanding	$ 4,400,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Estimate of contingent sales tax payable	$ 1.6	$ 1.6
Inventory purchase obligations	$ 33.8

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate	56.30%	35.30%
Provision for income taxes	$ 2,459	$ 4,854

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details)	Mar. 31, 2023 vote
Class A Common Stock
Earnings Per Share Basic [Line Items]
Number of votes	1
Class B Common Stock
Earnings Per Share Basic [Line Items]
Number of votes	20

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator:
Net income	$ 1,909	$ 8,899
Denominator:
Weighted-average shares outstanding—basic (in shares)	166,773,335	164,406,142
Weighted-average shares outstanding - diluted (in shares)	182,853,746	193,379,275
Earnings per share:
Basic earnings per share (in USD per share)	$ 0.01	$ 0.05
Effect of dilutive stock options and restricted stock (in USD per share)	0	0
Diluted earnings per share (in USD per share)	$ 0.01	$ 0.05
Employee Stock Option
Denominator:
Effect of dilutive stock options (in shares)	14,843,572	26,559,931
Restricted Stock
Denominator:
Effect of dilutive stock options (in shares)	1,236,839	2,413,202

Earnings Per Share - Schedule_2

Earnings Per Share - Schedule of Antidilutive Securities Excluded From Computation of Earning Per Share (Detail) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Employee Stock Option
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Stock options to purchase common stock (in shares)	9,074,968	3,161,837
RSU
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Stock options to purchase common stock (in shares)	1,757,455	1,021,834