Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 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, $0.0001 par value per share | |
Trading Symbol | FIGS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001846576 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 160,717,541 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 7,748,952 |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 146,730 | $ 159,775 |
Short-term investments | 38,595 | 0 |
Accounts receivable | 6,269 | 6,866 |
Inventory, net | 167,806 | 177,976 |
Prepaid expenses and other current assets | 9,849 | 11,883 |
Total current assets | 369,249 | 356,500 |
Non-current assets | ||
Property and equipment, net | 11,399 | 11,024 |
Operating lease right-of-use assets | 17,154 | 15,312 |
Deferred tax assets | 11,955 | 10,971 |
Other assets | 1,258 | 1,257 |
Total non-current assets | 41,766 | 38,564 |
Total assets | 411,015 | 395,064 |
Current liabilities | ||
Accounts payable | 11,933 | 20,906 |
Operating lease liabilities | 3,818 | 3,408 |
Accrued expenses | 17,990 | 26,164 |
Accrued compensation and benefits | 4,366 | 3,415 |
Sales tax payable | 2,953 | 3,374 |
Gift card liability | 8,390 | 7,882 |
Deferred revenue | 777 | 2,786 |
Returns reserve | 3,314 | 3,458 |
Income tax payable | 3,290 | 0 |
Total current liabilities | 56,831 | 71,393 |
Non-current liabilities | ||
Operating lease liabilities, non-current | 17,086 | 15,756 |
Other non-current liabilities | 176 | 176 |
Total liabilities | 74,093 | 87,325 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity | ||
Preferred stock — par value $0.0001 per share, 100,000,000 shares authorized as of June 30, 2023 and December 31, 2022; zero shares issued and outstanding as of June 30, 2023 and December 31, 2022 | 0 | 0 |
Additional paid-in capital | 291,306 | 268,606 |
Accumulated other comprehensive loss | (8) | 0 |
Retained earnings | 45,608 | 39,117 |
Total stockholders’ equity | 336,922 | 307,739 |
Total liabilities and stockholders’ equity | 411,015 | 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 | Jun. 30, 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) | 160,504,522 | 159,351,307 |
Common stock, shares, outstanding (in shares) | 160,504,522 | 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) | 7,748,952 | 7,210,795 |
Common stock, shares, outstanding (in shares) | 7,748,952 | 7,210,795 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net revenues | $ 138,132 | $ 122,247 | $ 258,364 | $ 232,348 |
Cost of goods sold | 42,098 | 35,899 | 76,654 | 67,569 |
Gross profit | 96,034 | 86,348 | 181,710 | 164,779 |
Operating expenses | ||||
Selling | 33,739 | 26,803 | 64,896 | 48,861 |
Marketing | 20,889 | 20,824 | 37,953 | 36,232 |
General and administrative | 34,840 | 29,270 | 68,997 | 56,490 |
Total operating expenses | 89,468 | 76,897 | 171,846 | 141,583 |
Net income from operations | 6,566 | 9,451 | 9,864 | 23,196 |
Other income, net | ||||
Interest income | 1,521 | 70 | 2,593 | 79 |
Other expense | (4) | 0 | (5) | (1) |
Total other income, net | 1,517 | 70 | 2,588 | 78 |
Net income before provision for income taxes | 8,083 | 9,521 | 12,452 | 23,274 |
Provision for income taxes | 3,501 | 4,669 | 5,961 | 9,523 |
Net income | $ 4,582 | $ 4,852 | $ 6,491 | $ 13,751 |
Earnings per share: | ||||
Basic earnings per share (in USD per share) | $ 0.03 | $ 0.03 | $ 0.04 | $ 0.08 |
Diluted earnings per share (in USD per share) | $ 0.02 | $ 0.03 | $ 0.04 | $ 0.07 |
Weighted Average Number of Shares Outstanding | ||||
Weighted-average shares outstanding—basic (in shares) | 167,423,656 | 164,919,979 | 167,100,292 | 164,664,480 |
Weighted-average shares outstanding - diluted (in shares) | 183,332,560 | 188,903,553 | 183,094,950 | 191,142,834 |
CONDENSED STATEMENTS OF COMPREH
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 4,582 | $ 4,852 | $ 6,491 | $ 13,751 |
Other comprehensive loss, net of tax | ||||
Unrealized loss on short-term investments, net of tax | (8) | 0 | (8) | 0 |
Total other comprehensive loss, net of tax | (8) | 0 | (8) | 0 |
Total comprehensive income | $ 4,574 | $ 4,852 | $ 6,483 | $ 13,751 |
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 | Accumulated Other Comprehensive Loss |
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, 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] | ||||||||||
Net income | 13,751 | |||||||||
Other comprehensive loss, net of tax | 0 | |||||||||
Ending balance (in shares) at Jun. 30, 2022 | 158,728,167 | 6,534,491 | ||||||||
Ending Balance at Jun. 30, 2022 | 278,130 | $ 15 | $ 1 | 246,432 | 31,682 | |||||
Beginning Balance (in shares) at Mar. 31, 2022 | 158,530,688 | 6,196,339 | ||||||||
Beginning Balance at Mar. 31, 2022 | 263,301 | $ 15 | $ 1 | 236,455 | 26,830 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of Class A Common Stock upon vesting of Restricted Stock, net of tax withholdings (in shares) | 432,901 | |||||||||
Issuance of stock upon exchange of stock (in shares) | (338,152) | 338,152 | ||||||||
Capital contribution | 479 | 479 | ||||||||
Stock-based compensation | 8,777 | 8,777 | ||||||||
Stock option exercises and employee stock purchases (in shares) | 102,730 | |||||||||
Stock option exercises and employee stock purchases | 721 | 721 | ||||||||
Net income | 4,852 | 4,852 | ||||||||
Other comprehensive loss, net of tax | 0 | |||||||||
Ending balance (in shares) at Jun. 30, 2022 | 158,728,167 | 6,534,491 | ||||||||
Ending Balance at Jun. 30, 2022 | 278,130 | $ 15 | $ 1 | 246,432 | 31,682 | |||||
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 | $ 0 | ||||
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) | 271,219 | ||||||||
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 | 0 | ||||
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 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 6,491 | |||||||||
Other comprehensive loss, net of tax | (8) | |||||||||
Ending balance (in shares) at Jun. 30, 2023 | 160,504,522 | 7,748,952 | ||||||||
Ending Balance at Jun. 30, 2023 | 336,922 | $ 16 | $ 0 | 291,306 | 45,608 | (8) | ||||
Beginning Balance (in shares) at Mar. 31, 2023 | 159,576,825 | 7,482,014 | ||||||||
Beginning Balance at Mar. 31, 2023 | 320,193 | $ 16 | $ 0 | 279,151 | 41,026 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of Class A Common Stock upon vesting of Restricted Stock, net of tax withholdings (in shares) | 626,377 | |||||||||
Issuance of stock upon exchange of stock (in shares) | (266,938) | 266,938 | ||||||||
Stock-based compensation | 11,519 | 11,519 | ||||||||
Stock option exercises (in shares) | 568,258 | |||||||||
Stock option exercises | 636 | 636 | ||||||||
Net income | 4,582 | 4,582 | ||||||||
Other comprehensive loss, net of tax | (8) | (8) | ||||||||
Ending balance (in shares) at Jun. 30, 2023 | 160,504,522 | 7,748,952 | ||||||||
Ending Balance at Jun. 30, 2023 | $ 336,922 | $ 16 | $ 0 | $ 291,306 | $ 45,608 | $ (8) |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 6,491 | $ 13,751 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization expense | 1,372 | 808 |
Deferred income taxes | (984) | (315) |
Non-cash operating lease cost | 1,364 | 1,061 |
Stock-based compensation | 22,309 | 17,254 |
Other | (260) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 597 | (2,637) |
Due from related party | 0 | (631) |
Inventory | 10,170 | (41,578) |
Prepaid expenses and other current assets | 2,034 | (4,929) |
Other assets | (1) | (687) |
Accounts payable | (9,100) | (4,081) |
Accrued expenses | (8,181) | 2,970 |
Accrued compensation and benefits | 951 | (2,994) |
Sales tax payable | (421) | 58 |
Gift card liability | 508 | 319 |
Deferred revenue | (2,009) | 448 |
Returns reserve | (144) | (387) |
Income tax payable | 3,290 | (3,973) |
Operating lease liabilities | (1,466) | (964) |
Other non-current liabilities | 0 | (28) |
Net cash (used in) provided by operating activities | 26,520 | (26,535) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,613) | (1,727) |
Purchases of available-for-sale securities | (38,343) | 0 |
Purchases of held-to-maturity securities | 0 | (500) |
Net cash used in investing activities | (39,956) | (2,227) |
Cash flows from financing activities: | ||
Proceeds from stock option exercises and employee stock purchases | 637 | 1,073 |
Tax payments related to net share settlements on restricted stock units | (246) | 0 |
Capital contributions | 0 | 479 |
Net cash provided by financing activities | 391 | 1,552 |
Net decrease in cash, cash equivalents, and restricted cash | (13,045) | (27,210) |
Cash, cash equivalents, and restricted cash, beginning of period | 159,775 | 197,430 |
Cash and cash equivalents, end of period | 146,730 | 170,220 |
Supplemental disclosures: | ||
Property and equipment included in accounts payable and accrued expenses | 153 | 309 |
Lease assets obtained in exchange for new operating lease liabilities | $ 3,206 | $ 4,670 |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 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. Short-term Investments The Company holds short-term investments in U.S. government debt securities and corporate debt securities. The Company’s short-term investments with maturities of 12-months or less are classified as current assets on the Company’s condensed balance sheets and have been classified and accounted for as available-for-sale securities. The Company determines the appropriate classification of its investments at the time of purchase and reevaluates their classification at each balance sheet date. The Company’s available-for-sale investments in debt securities are carried at fair value with unrealized gains and losses, net of taxes, reported within accumulated other comprehensive loss in stockholders’ equity. Available-for-sale debt securities with an amortized cost basis in excess of estimated fair value are assessed to determine what amount of that difference, if any, is caused by expected credit losses, with any allowance for credit losses recognized as a charge in other expense on the Company’s condensed statements of operations. The Company did not record any credit losses on its available-for-sale debt securities in any of the periods presented. The Company determines gains or losses on the sale or maturities of short-term investments using the specific identification method and gains or losses are recorded in other expense on the Company’s condensed statements of operations. 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 June 30, 2023 and December 31, 2022. Revenue Recognition The Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“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 goods 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 $3.3 million and $3.5 million as of June 30, 2023 and December 31, 2022, respectively. 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 six months ended June 30, 2023 related to the deferred revenue balance that existed at December 31, 2022. The Company recognized revenues of $2.0 million during the six months ended June 30, 2023 related to redemptions from the gift card liability 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 and six months ended June 30, 2023 and 2022 (in thousands): Three months ended Six months ended 2023 2022 2023 2022 By geography: United States $ 123,797 $ 112,830 $ 231,477 $ 214,248 Rest of the world 14,335 9,417 26,887 18,100 $ 138,132 $ 122,247 $ 258,364 $ 232,348 By product: Scrubwear $ 115,238 $ 103,887 $ 213,104 $ 194,354 Non-Scrubwear 22,894 18,360 45,260 37,994 $ 138,132 $ 122,247 $ 258,364 $ 232,348 |
Cash Equivalents and Short-Term
Cash Equivalents and Short-Term Investments | 6 Months Ended |
Jun. 30, 2023 | |
Cash, Cash Equivalents, and Short-Term Investments [Abstract] | |
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS The Company's cash equivalents consist of money market funds and highly liquid investments with original maturities of 90 days or less from the date of purchase. The Company classifies cash equivalents and short-term investments within Level 1 or Level 2 of the fair value hierarchy. The following tables present the Company's cash equivalents and short-term investments by significant investment category and fair value level as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Level 1 (1) : Money market funds $ 84,698 $ — $ — $ 84,698 U.S. government securities 24,173 3 (8) 24,168 Level 2 (2) : Corporate paper 26,701 4 (7) 26,698 Total $ 135,572 $ 7 $ (15) $ 135,564 December 31, 2022 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Level 1 (1) : Money market funds $ 102,908 $ — $ — $ 102,908 Total $ 102,908 $ — $ — $ 102,908 (1) Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities. (2) Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. 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 | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Accounts receivable consisted of the following (in thousands): June 30, December 31, Trade $ 5,621 $ 6,288 Other 648 578 $ 6,269 $ 6,866 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 6 Months Ended |
Jun. 30, 2023 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following (in thousands): June 30, December 31, Inventory deposits $ 1,923 $ 2,086 Prepaid expenses 6,781 6,588 Prepaid taxes 38 2,186 Other 1,107 1,023 $ 9,849 $ 11,883 |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following (in thousands): June 30, December 31, Furniture and fixtures $ 1,223 $ 1,189 Office equipment 991 937 Machinery and equipment 2,735 2,853 Computer equipment 1,735 1,486 Software and website design 7,113 6,209 Leasehold improvements 3,169 3,126 Capital projects in progress 592 11 Total property and equipment 17,558 15,811 Less: accumulated depreciation and amortization (6,159) (4,787) Property and equipment, net $ 11,399 $ 11,024 Depreciation and amortization expense of property and equipment for the three and six months ended June 30, 2023 was $0.7 million and $1.4 million, respectively. Depreciation and amortization expense of property and equipment for the three and six months ended June 30, 2022 was $0.4 million and $0.8 million, respectively. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses consisted of the following (in thousands): June 30, December 31, Accrued inventory $ 5,014 $ 8,906 Accrued shipping 1,230 2,149 Accrued selling expenses 6,252 10,648 Accrued legal expenses 553 395 Accrued marketing expenses 2,619 1,747 Other accrued expenses 2,322 2,319 $ 17,990 $ 26,164 |
Financing Arrangements
Financing Arrangements | 6 Months Ended |
Jun. 30, 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 June 30, 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 June 30, 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 | 6 Months Ended |
Jun. 30, 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 the 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 June 30, 2023 and December 31, 2022, as an estimate of contingent sales tax payable. Inventory Purchase Obligations Inventory purchase obligations as of June 30, 2023 were $33.1 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 condensed financial statements. During the three months ended June 30, 2023, the Company had legal actions against it with respect to its litigation with Miracle Ventures I, LP, which concluded in the Company’s favor on May 4, 2023, and a putative securities class action and related derivative suit against the Company and certain of its executive officers and directors. The Company intends to vigorously defend against such claims. The Company has determined that any potential loss is neither probable nor reasonably estimable and an accrual has not been recorded. Leases In the second quarter of 2023, the Company entered into lease agreements with expected commencement dates in the second half of 2023 and first half of 2024. The Company expects to classify these leases as operating leases. The initial terms of the leases range from 5 years to 7 years and the Company expects to record operating lease costs of $47.8 million over the life of the leases. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 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 June 30, 2023 and 2022, the Company’s effective tax rate was 43.3% and 49.0%, 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 June 30, 2023 and 2022, the Company recorded income tax expense of $3.5 million and $4.7 million, respectively. For the six months ended June 30, 2023 and 2022, the Company’s effective tax rate was 47.9% and 40.9%, 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 six months ended June 30, 2023 and 2022, the Company recorded income tax expense of $6.0 million and $9.5 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 | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2023 and 2022 (in thousands, except share and per share amounts): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Numerator: Net income $ 4,582 $ 4,852 $ 6,491 $ 13,751 Denominator: Weighted-average shares—basic 167,423,656 164,919,979 167,100,292 164,664,480 Effect of dilutive stock options 14,818,670 21,933,701 14,831,121 24,246,816 Effect of dilutive restricted stock 1,090,234 2,049,872 1,163,537 2,231,537 Weighted-average shares—diluted 183,332,560 188,903,553 183,094,950 191,142,834 Earnings per share: Basic earnings per share $ 0.03 $ 0.03 $ 0.04 $ 0.08 Effect of dilutive stock options and restricted stock (0.01) — — (0.01) Diluted earnings per share $ 0.02 $ 0.03 $ 0.04 $ 0.07 The Company excluded the following weighted average common equivalent shares from the computation of diluted earnings per share for the three and six months ended June 30, 2023 and the three and six months ended June 30, 2022 because including them would have had an anti-dilutive effect: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Stock options to purchase common stock 11,303,495 4,936,480 10,198,597 3,629,244 Restricted stock units 2,287,331 1,307,017 2,030,447 1,010,997 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONSDuring the second quarter of 2022, the Company’s Executive Chair and Chief Executive Officer (the “Founders”) paid the Company, at their election, an aggregate amount of $0.4 million for certain of the Company's professional fees in connection with the follow-on offering completed on September 20, 2021. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||||
Net income | $ 4,582 | $ 1,909 | $ 4,852 | $ 8,899 | $ 6,491 | $ 13,751 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Heather Hasson [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On May 9, 2023, Heather Hasson, our Executive Chair, entered into a sell-to-cover instruction letter (the “Instruction Letter”) that provides for sales of only such number of shares of Class A common stock as are necessary to satisfy the applicable tax withholding obligations arising exclusively from the vesting or settlement of RSUs granted to Ms. Hasson under the Company’s Amended 2016 Equity Incentive Plan and/or the Company’s 2021 Incentive Award Plan, or any successor plan (each sale, an “eligible sell-to-cover transaction” within the meaning of Rule 10b5-1(c) of the Exchange Act). The Instruction Letter is a “Rule 10b5-1 trading arrangement” as defined in Item 408(a) of Regulation S-K and is intended to satisfy the affirmative defense of Rule 10b5-1(c). The Instruction Letter will remain in effect so long as taxes are required to be paid upon the vesting or settlement of RSUs awarded or to be awarded, unless the Instruction Letter is earlier terminated. The total number of shares of Class A common stock that may be sold pursuant to the Instruction Letter is not determinable. |
Name | Heather Hasson |
Title | Executive Chair |
Adoption Date | On May 9, 2023 |
Other Director Or Officer [Member] | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 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. |
Short-term Investments | Short-term Investments The Company holds short-term investments in U.S. government debt securities and corporate debt securities. The Company’s short-term investments with maturities of 12-months or less are classified as current assets on the Company’s condensed balance sheets and have been classified and accounted for as available-for-sale securities. The Company determines the appropriate classification of its investments at the time of purchase and reevaluates their classification at each balance sheet date. |
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 Standards Update (“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 goods 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 $3.3 million and $3.5 million as of June 30, 2023 and December 31, 2022, respectively. 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 six months ended June 30, 2023 related to the deferred revenue balance that existed at December 31, 2022. The Company recognized revenues of $2.0 million during the six months ended June 30, 2023 related to redemptions from the gift card liability 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) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents the disaggregation of the Company’s net revenues for the three and six months ended June 30, 2023 and 2022 (in thousands): Three months ended Six months ended 2023 2022 2023 2022 By geography: United States $ 123,797 $ 112,830 $ 231,477 $ 214,248 Rest of the world 14,335 9,417 26,887 18,100 $ 138,132 $ 122,247 $ 258,364 $ 232,348 By product: Scrubwear $ 115,238 $ 103,887 $ 213,104 $ 194,354 Non-Scrubwear 22,894 18,360 45,260 37,994 $ 138,132 $ 122,247 $ 258,364 $ 232,348 |
Cash Equivalents and Short-Te_2
Cash Equivalents and Short-Term Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Cash, Cash Equivalents, and Short-Term Investments [Abstract] | |
Schedule of Cash and Cash Equivalents and Short-Term Investments | The following tables present the Company's cash equivalents and short-term investments by significant investment category and fair value level as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Level 1 (1) : Money market funds $ 84,698 $ — $ — $ 84,698 U.S. government securities 24,173 3 (8) 24,168 Level 2 (2) : Corporate paper 26,701 4 (7) 26,698 Total $ 135,572 $ 7 $ (15) $ 135,564 December 31, 2022 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Level 1 (1) : Money market funds $ 102,908 $ — $ — $ 102,908 Total $ 102,908 $ — $ — $ 102,908 (1) Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities. (2) Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
Schedule of Cash and Cash Equivalents and Short-Term Investments | The following tables present the Company's cash equivalents and short-term investments by significant investment category and fair value level as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Level 1 (1) : Money market funds $ 84,698 $ — $ — $ 84,698 U.S. government securities 24,173 3 (8) 24,168 Level 2 (2) : Corporate paper 26,701 4 (7) 26,698 Total $ 135,572 $ 7 $ (15) $ 135,564 December 31, 2022 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Level 1 (1) : Money market funds $ 102,908 $ — $ — $ 102,908 Total $ 102,908 $ — $ — $ 102,908 (1) Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities. (2) Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Accounts receivable consisted of the following (in thousands): June 30, December 31, Trade $ 5,621 $ 6,288 Other 648 578 $ 6,269 $ 6,866 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): June 30, December 31, Inventory deposits $ 1,923 $ 2,086 Prepaid expenses 6,781 6,588 Prepaid taxes 38 2,186 Other 1,107 1,023 $ 9,849 $ 11,883 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): June 30, December 31, Furniture and fixtures $ 1,223 $ 1,189 Office equipment 991 937 Machinery and equipment 2,735 2,853 Computer equipment 1,735 1,486 Software and website design 7,113 6,209 Leasehold improvements 3,169 3,126 Capital projects in progress 592 11 Total property and equipment 17,558 15,811 Less: accumulated depreciation and amortization (6,159) (4,787) Property and equipment, net $ 11,399 $ 11,024 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following (in thousands): June 30, December 31, Accrued inventory $ 5,014 $ 8,906 Accrued shipping 1,230 2,149 Accrued selling expenses 6,252 10,648 Accrued legal expenses 553 395 Accrued marketing expenses 2,619 1,747 Other accrued expenses 2,322 2,319 $ 17,990 $ 26,164 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2023 and 2022 (in thousands, except share and per share amounts): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Numerator: Net income $ 4,582 $ 4,852 $ 6,491 $ 13,751 Denominator: Weighted-average shares—basic 167,423,656 164,919,979 167,100,292 164,664,480 Effect of dilutive stock options 14,818,670 21,933,701 14,831,121 24,246,816 Effect of dilutive restricted stock 1,090,234 2,049,872 1,163,537 2,231,537 Weighted-average shares—diluted 183,332,560 188,903,553 183,094,950 191,142,834 Earnings per share: Basic earnings per share $ 0.03 $ 0.03 $ 0.04 $ 0.08 Effect of dilutive stock options and restricted stock (0.01) — — (0.01) Diluted earnings per share $ 0.02 $ 0.03 $ 0.04 $ 0.07 |
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 and six months ended June 30, 2023 and the three and six months ended June 30, 2022 because including them would have had an anti-dilutive effect: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Stock options to purchase common stock 11,303,495 4,936,480 10,198,597 3,629,244 Restricted stock units 2,287,331 1,307,017 2,030,447 1,010,997 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Product return, refund period (in days) | 30 days | |
Returns reserve | $ 3,314 | $ 3,458 |
Deferred revenue recognized | 2,700 | |
Revenue from redemption of gift cards | $ 2,000 |
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 | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | ||||
Net revenues | $ 138,132 | $ 122,247 | $ 258,364 | $ 232,348 |
Scrubwear | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenues | 115,238 | 103,887 | 213,104 | 194,354 |
Non-Scrubwear | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenues | 22,894 | 18,360 | 45,260 | 37,994 |
United States | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenues | 123,797 | 112,830 | 231,477 | 214,248 |
Rest of the world | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenues | $ 14,335 | $ 9,417 | $ 26,887 | $ 18,100 |
Cash Equivalents and Short-Te_3
Cash Equivalents and Short-Term Investments - Schedule of Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents | ||
Cost | $ 146,730 | $ 159,775 |
Short-Term Investments | ||
Cost | 135,572 | 102,908 |
Gross Unrealized Gains | 7 | 0 |
Gross Unrealized Losses | (15) | 0 |
Fair Value | 135,564 | 102,908 |
Money market funds | ||
Cash and Cash Equivalents | ||
Fair Value | 84,698 | 102,908 |
Money market funds | Level 1 | ||
Cash and Cash Equivalents | ||
Cost | 84,698 | $ 102,908 |
U.S. government securities | ||
Short-Term Investments | ||
Fair Value | 24,168 | |
U.S. government securities | Level 1 | ||
Short-Term Investments | ||
Cost | 24,173 | |
Gross Unrealized Gains | 3 | |
Gross Unrealized Losses | (8) | |
Corporate paper | ||
Short-Term Investments | ||
Fair Value | 26,698 | |
Corporate paper | Level 2 | ||
Short-Term Investments | ||
Cost | 26,701 | |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses | $ (7) |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Trade | $ 5,621 | $ 6,288 |
Other | 648 | 578 |
Accounts receivable | $ 6,269 | $ 6,866 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Inventory deposits | $ 1,923 | $ 2,086 |
Prepaid expenses | 6,781 | 6,588 |
Prepaid taxes | 38 | 2,186 |
Other | 1,107 | 1,023 |
Prepaid expenses and other current assets | $ 9,849 | $ 11,883 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 17,558 | $ 15,811 |
Less: accumulated depreciation and amortization | (6,159) | (4,787) |
Property and equipment, net | 11,399 | 11,024 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 1,223 | 1,189 |
Office equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 991 | 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 | 1,735 | 1,486 |
Software and website design | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 7,113 | 6,209 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 3,169 | 3,126 |
Capital projects in progress | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 592 | $ 11 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 0.7 | $ 0.4 | $ 1.4 | $ 0.8 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued inventory | $ 5,014 | $ 8,906 |
Accrued shipping | 1,230 | 2,149 |
Accrued selling expenses | 6,252 | 10,648 |
Accrued legal expenses | 553 | 395 |
Accrued marketing expenses | 2,619 | 1,747 |
Other accrued expenses | 2,322 | 2,319 |
Total accrued expenses | $ 17,990 | $ 26,164 |
Financing Arrangements - Additi
Financing Arrangements - Additional Information (Details) - Bank of America, N.A. - USD ($) | 3 Months Ended | |
Jun. 30, 2023 | Sep. 07, 2021 | |
Revolving Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | |
Amount outstanding | $ 0 | |
Outstanding borrowings under existing credit facility | $ 95,600,000 | |
Debt instrument, basis spread on variable rate | 1.125% | |
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 | 3 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Estimate of contingent sales tax payable | $ 1.6 | $ 1.6 |
Inventory purchase obligations | 33.1 | |
Long-Term Purchase Commitment [Line Items] | ||
Non-cash operating lease cost | $ 47.8 | |
Minimum [Member] | ||
Long-Term Purchase Commitment [Line Items] | ||
Term of lease (in years) | 5 years | |
Maximum [Member] | ||
Long-Term Purchase Commitment [Line Items] | ||
Term of lease (in years) | 7 years |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 43.30% | 49% | 47.90% | 40.90% |
Provision for income taxes | $ 3,501 | $ 4,669 | $ 5,961 | $ 9,523 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) | Jun. 30, 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 | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||||||
Net income | $ 4,582 | $ 1,909 | $ 4,852 | $ 8,899 | $ 6,491 | $ 13,751 |
Denominator: | ||||||
Weighted-average shares outstanding—basic (in shares) | 167,423,656 | 164,919,979 | 167,100,292 | 164,664,480 | ||
Weighted-average shares outstanding - diluted (in shares) | 183,332,560 | 188,903,553 | 183,094,950 | 191,142,834 | ||
Earnings per share: | ||||||
Basic earnings per share (in USD per share) | $ 0.03 | $ 0.03 | $ 0.04 | $ 0.08 | ||
Effect of dilutive stock options and restricted stock (in USD per share) | (0.01) | 0 | 0 | (0.01) | ||
Diluted earnings per share (in USD per share) | $ 0.02 | $ 0.03 | $ 0.04 | $ 0.07 | ||
Employee Stock Option | ||||||
Denominator: | ||||||
Effect of dilutive stock options (in shares) | 14,818,670 | 21,933,701 | 14,831,121 | 24,246,816 | ||
Restricted Stock | ||||||
Denominator: | ||||||
Effect of dilutive stock options (in shares) | 1,090,234 | 2,049,872 | 1,163,537 | 2,231,537 |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Antidilutive Securities Excluded From Computation of Earning Per Share (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Employee Stock Option | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Stock options to purchase common stock (in shares) | 11,303,495 | 4,936,480 | 10,198,597 | 3,629,244 |
RSU | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Stock options to purchase common stock (in shares) | 2,287,331 | 1,307,017 | 2,030,447 | 1,010,997 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |||
Due from related party | $ 400 | $ 0 | $ (631) |