Good afternoon. Thank you for joining today's FIGS' second quarter and fiscal 2024 earnings conference call. My name is Cole, and I'll be the moderator for today's call. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. If you'd like to queue for a question, you can do so by pressing star one on your telephone keypad. I'd now like to pass the call over to Todd Maron. Please go ahead. Thank you. Good afternoon, and thank you for joining today's call to discuss FIGS's second quarter 2024 results, which we released this afternoon and can be found in our earnings press release and in the stockholder presentation posted to our investor relations website at ir.wearfigs.com. Presenting on today's call are Trina Spear, our co-founder and CEO, and Kevin Fosse, our interim CFO. As a reminder, remarks on this call that do not concern past events are forward-looking statements. These may include predictions, expectations, or estimates, including about future financial performance, market opportunity, or business plans. Forward-looking statements involve risks and uncertainties, and actual results could differ materially. These and other risks are discussed in our SEC filings, including in the 10-Q we filed today, which we encourage you to review. Do not place undue reliance on forward-looking statements, which speak only as of today and which we undertake no obligation to update. Finally, we will discuss certain non-GAAP metrics and key performance indicators, which we believe are useful supplemental measures for understanding our business. Definitions and reconciliations of these non-GAAP measures to their most comparable GAAP measures are included in the stockholder presentation we issued today. Now, I would like to turn the call over to Trina Spear, CEO of FIGS. Thank you, Todd. We delivered solid second quarter results with revenue growth at the high end of our expected range and adjusted EBITDA margin above our expectation. Our U.S. growth inflected back into positive territory, driven by better repeat frequency trends. Our international growth accelerated and scrub wear also returned to year-on-year growth. Our balance sheet is in stellar shape with a healthy inventory position, and we have the financial flexibility to scale our brand and our business. We are particularly pleased that alongside these Q2 results, we saw leading indicators of revenue improve. We teed up our company for our Olympics partnership, our most consequential marketing campaign ever, and we drove innovation in product, marketing, and supply chain. Our growth opportunity is massive, and our ability to capture that growth is unique. As we activate our product innovation and broaden our brand reach, we are exceptionally well positioned to capitalize on that growth opportunity in the second half of this year and beyond. I want to lead with our partnership and outfitting of the Team USA Medical Team in the ongoing Olympic and Paralympic Games in Paris. Our Olympics campaign embodies the key strategic drivers we're pursuing for our company. First, we are above all, a brand for healthcare. Our Olympics product is some of the best products we've ever made, and we have designed it to address the specific needs of the healthcare professionals who will wear it. We've talked about creating pinnacle products and how that pinnacle helps drive our core business. We have amazing new pinnacle products with innovative and solutions-oriented features, and this includes what we designed for the Olympics. The Olympics collection is on shift. Many of these healthcare professionals are working outside, and they need durable, functional products that enable high performance. Other healthcare professionals can replicate the look and get the same solutions as their counterparts they see on screen at the games. They can then clearly experience those same design elements, the same colors, the same visual cues in the core products. Our design team went on site to Team USA House in Paris to hand-deliver this product to the medical team supporting our Olympians. The medical team was blown away. While there is a core group that works with the US Olympic Committee year-round, the majority of the medical team volunteers time. Never before have they received this kind of focus with product design specifically for them and a commercial that tells their stories in an elevated way. We also hosted an incredible event to watch the opening ceremony in New York City on July 26th, and a celebration of service in Paris earlier this week to honor the USA Medical Team. Next, we've talked about the importance of our top-of-funnel marketing campaigns, which allow us to tap into the emotional connection we have with our community. We are strategically allocating key marketing resources as we execute the kind of 360-degree marketing that will continue to elevate our brand. Shining a light on the USA Medical Team is an absolute honor, and there are so many stories about them to be told, stories that resonate deeply with not only the awesome humans from our healthcare community, but everyone inside and outside of healthcare. Dr. Gloria Beim represents the best of both of those worlds. She is epic. She's an orthopedic surgeon and broke gender barriers, barriers to earn her seat. She was the first woman accepted into the prestigious sports medicine program at the University of Pittsburgh, where she completed her training before serving on the USA, US Medical Teams for multiple Olympic and Paralympic Games. Every Olympic she goes to, she learns the language of that country. This is her eighth Olympics. We hope you've seen our anthemic brand film. We feature Team USA healthcare professionals, including Dr. Beim and some of our FIGS brand ambassadors, but it really speaks to all healthcare professionals and showcases the dedication and the passion they put into their craft. It's airing across linear and streaming broadcasts. We're on buses, subways, and billboards. We're obviously on social. From awareness to consideration to conversion, this customer journey is very much the future of our brand. As we showed, it truly does take heart to build bodies that break records. Third, and finally, we've spoken to you about our second community hub, which recently opened in Rittenhouse Square in Philadelphia. It has opened as an activation dedicated to our celebration of the Olympics, which is catapulting it onto the retail scene. It will transition to a mainline FIGS presentation after the game. Our focus on product innovation and top-of-the-funnel marketing continues to drive strong results. 2024 is an exciting year of bringing real innovation through design, collaboration, fabrication, and fit. Almost every single launch in Q2 performed above our expectations. We launched our Flare Scrub Legging, essentially creating a category that didn't exist previously. It's performing extremely well. On our last call, we discussed our Indestructible Collection, highlighting Dr. Chloe, a wildlife veterinarian working in South Africa. The combination of unparalleled durability and a compelling narrative resonated with our community. Collaborations are an ongoing strength for us as our brand and franchise attract the highest quality partners. Our Star Wars: May the Fourth Be With You collaboration with Lucasfilm was highly successful. We also had more incredible launches with New Balance, including both the Roav and 327 models, which combined style, function, and comfort. We partner in a strategic way with companies that are aligned with us, earning fantastic engagement. Our layering system is also working. We offer products for on shift and off shift, head to toe, to work, at work, from work, inside and out. In the second quarter, our non-scrub wear categories grew by 13% and reached 18% of sales. These products expand our TAM, position us as a lifestyle brand, and help drive our core over the long run. As I'll describe later, this impacts gross margin as the new products ramp, but as we gain scale in these new categories and the core follows, we see... expect to see margins improve. Customers are embracing our product innovation, top-of-funnel marketing, and collaboration. They are coming back to our brand more frequently, continuing a trend we shared with you on our last conference call. Another important trend that is moving in a positive direction is branded search. There are now equal number of searches online for FIGS as there are for scrubs. This indicates that we own mind share for the category, which was always our goal. We have more to look forward to in the second half of the year. On product, we achieved $440 million of net revenues in scrubs alone in 2023, almost entirely from a single fabrication, FIONx. Competitors have tried to copy us, but we're building more and more distance from them. Our product is too innovative, too high quality, too technical, too tailored in the literal design sense, and in its laser-like focus on our community and its needs. As we move through the second half, we'll continue to update and upgrade our fit in a way that works for all bodies. As a D2C company, we know more about our customers than anyone, and our fit upgrades will allow us to direct them to the right fit and sizing with greater consistency. Our other growth initiatives are also progressing well. International had a record quarter, with year-on-year revenue growth accelerating to 32% from 29% in the first quarter of 2024, reflecting the reclassification of duty subsidies, which negatively impacted international growth by 12 percentage points. We have fantastic marketing opportunities to go deep in high-potential countries that we're going to pursue over time. We sell internationally, but we haven't even come close to fully capitalizing on the potential of international. As we think about the revenue opportunity of our company, there's so much there, and the competitive set overseas is so much more limited. Our brand has amazing cachet, and we're just getting started with what we can do. Our TEAMS biz is also at a record quarter. We launched our expanded catalog, impacting over 2,000 organizations. We also launched an exciting new virtual storefront for team members of VEG, Veterinary Emergency Group, one of our largest TEAMS customers, to enable them to use VEG funds to buy FIGS as their uniform. We're excited that this customizable feature can be scaled to support current and future TEAMS customers. It is incredible to see more and more concierge clinics looking to outfit their teams in FIGS and cover the expense for their employees. Our retail push is also continuing apace. We continue to see 40% of our community hub transactions from customers that are new to the brand. Our retail customer is proving to be sticky. Customers who make their first purchase in a store are buying from FIGS more frequently than those who make their first purchase online. Our Century City Community Hub is delivering on its ambitious plan and is achieving a stellar $1,800 of sales per sq ft. Again, we couldn't be more excited to launch the Rittenhouse Community Hub in Philly, which is four times larger than our Century City location, and through both products and programming, will be a one-of-a-kind hub for our community there. With respect to our operations, we have massively upgraded our logistics infrastructure to improve our cost profile at our current size and enhance our customer service. We now have the footprint to support a much larger company. We recently opened our new distribution facility in Arizona and have nearly completed our transition out of our legacy facility in California. We've increased our footprint by more than 75% while reducing our rent per sq ft substantially. Our new facility is state-of-the-art, with extensive use of robotics. 60% of the facility is completely automated, essentially people-free, with over 700 robots picking and allocating product and extensive automated conveyors moving orders through our facility. We've more than doubled our potential throughput and tripled space for our embroidery workshop to personalize and customize our products for our healthcare professionals. As expected, the distribution center move increased our selling expenses as a percent of revenue, with our estimated full year transitional costs continuing to be approximately $13 million. Even as we've expanded our product offering, geared up for the Olympics, and managed our transition into our new DC, inventory remains in excellent shape. Our inventory declined 29% year-over-year, while revenues grew 4.4%. As a reminder, we're structurally advantaged when it comes to inventory, because as a uniform player, the products we sell are relatively non-discretionary, seasonless, and much, much less subject to fashion risk. Healthcare professionals need them to do their jobs. We also continue to advocate for our community. We mobilized our impact effort during Q2 by bringing 16 extraordinary healthcare professionals to Capitol Hill and the White House. Our advocacy resulted in several important wins on our Awesome Humans bill, including a commitment from congressional leadership to pass critical mental health support for healthcare professionals this year. As we enter the back half, we are delighted to welcome Sarah O'Grady as our new Chief Financial Officer. Sarah spent almost 17 years at Lululemon, and for the past 3 years, served as Senior Vice President of Financial Planning and Analysis. She has firsthand experience growing an innovative lifestyle brand as she helped the company grow revenue more than 30-fold to over $10 billion, build a 700-store retail footprint, and scaled into more than 25 countries across the globe. We want to thank Kevin Fosty for stepping up and serving ably as Interim CFO, and are delighted that he will continue on in his prior role as VP Corporate Controller. To summarize our quarter and achievements, our Olympics effort is yielding amazing products and an unprecedented, highly effective marketing campaign. Our innovation machine is humming, and we have impactful enhancements in sight for fit and fabrication. Our marketing is resonating, and customers are coming back to our brand. International teams and community hubs are all in the early stages of their long-term growth trajectory, and our logistics capabilities set us up to drive powerful growth going forward. Moving to the outlook. I will let Kevin dive in, but would like to briefly touch on revenue, gross margin, and adjusted EBITDA margin. We are raising our 2024 full year revenue growth outlook to a range of flat to +2% growth, the prior range of -2% to +2% growth. This reflects our second quarter outperformance and our current visibility to Q3 and the second half overall, despite a choppy U.S. consumer backdrop. We expect gross margin for full year 2024 to be 150-200 basis points lower than 2023. The reason for this is that our newness is working better and faster than we expected, with our new pinnacle products, new scrubwear styles, and new non-scrubwear, scrubwear products outperforming. The fact that our newness is resonating is very important. It means we are becoming a lifestyle brand, and we are creating TAM in an industry where many of these categories did not previously exist. Our new pinnacle products also help drive the core, so over time, we expect their success will help grow our already high gross margin core products. And although our new products have lower gross margin today, as they gain volume and scale, we expect them to have a margin curve that is similar to the one we have historically experienced with our core scrubwear. All of these factors make us optimistic about our newness strategy and its impact on gross margin over the long term. In terms of our Adjusted EBITDA margin outlook, we are not flowing the full gross margin impact to the bottom line, as we expect to offset some of the impact within marketing and G&A. As a result, we are guiding to 9.5%-10% Adjusted EBITDA margin for the year. Our balance sheet is in stellar shape. We ended the quarter with over $268 million in the bank, a record level, and with zero debt. Our shareholders' equity is also at a record and exceeded $400 million for the first time in our history. We have the cash flow dynamics and the capital to fund our growth ambition. With all of this in mind, we're announcing that our board has authorized a $15 million share repurchase program. We're pleased that our strong financial profile and long-term outlook enable us to evolve our capital allocation strategy and return value to our shareholders through our share repurchase program. With that, I'll turn it over to Kevin. Thank you, Trina, and good afternoon. For the second quarter, we are pleased that net revenues and adjusted EBITDA margins came in ahead of our guidance. The inflection of our frequency trends and the return to growth in our U.S. and scrubs business indicate the long-term growth opportunity is still ahead of us. As we reignite industry-leading product innovation and powerful top-of-funnel marketing campaigns, we are confident that we are on the right track to drive long-term sustainable growth. I will begin my discussion with a detailed review of our second quarter results, followed by an update on our financial outlook. Starting with our second quarter results. Net revenues increased 4.4% to $144.2 million as compared to Q2 last year. Net revenues reflect higher orders from existing customers, offset by lower AOV. Active customers for the trailing twelve-month period increased 6.1% compared to the same period last year. Average order value decreased 1.7% to $113, and net revenues per active customer decreased 2.3% to $210... versus the same period last year, mainly driven by the accounting reclass related to duty subsidies for international customers. Looking at product categories, non-scrubs grew 13%, reaching 18% of net revenues, as Trina noted. Gross margin for Q2 was 67.4%, compared to 69.5% in Q2 of 2023. The decline in gross margin rate was primarily due to the product category mix shift that Trina described, as well as the reclass to duty subsidies. Our selling expense for Q2 was $36.9 million, representing 25.6% of net revenues, compared to 24.4% in Q2 of 2023. The decrease in selling expense as a percentage of net revenues primarily reflects transitory expenses associated with the transition to our new fulfillment center. Marketing expense for Q2 2024 was $23 million, representing 15.9% of net revenues, compared to 15.1% in Q2 2023. The increase in marketing expense as a percentage of net revenues was primarily due to our strategic investment in the biggest marketing campaign that we have ever done. Our first of its kind partnership, outfitting the Team USA medical team at the Olympic Games. SG&A for Q2 was $35.8 million, representing 24.8% of net revenues, compared to 25.2% in Q2 of 2023. The decrease in SG&A expense as a percentage of net revenues was primarily due to lower stock-based compensation expense and lower legal fees. The decrease was partially offset by a one-time scrub wear donation. Taking this to the bottom line, second quarter net income was $1.1 million or diluted EPS of $0.01, compared to second quarter 2023 net income of $4.6 million or $0.02 diluted EPS. Adjusted EBITDA for Q2 was $12.9 million, with an adjusted EBITDA margin of 9% compared to 13.7% in Q2 of 2023. Touching on our balance sheet, we finished the second quarter with cash and cash equivalents in short-term investments of $268.5 million with no debt. Inventory declined 29% to $119.3 million versus Q2 last year, as we continue to track to our plan of bringing inventory back to normalized levels by the end of the year. This is our fourth consecutive quarter of improved inventory turns. We are very proud of our ability to significantly reduce inventory while maintaining healthy margins and generating sales growth, illustrating the resiliency in our business model. Capital expenditures for the second quarter totaled $9 million. This is primarily related to the build-out of our new distribution center. Finally, we delivered strong free cash flow of $7.5 million in the second quarter. Turning to our outlook. Based on our Q2 performance and strong response to our product launches and brand initiatives, we are raising our full year net revenue outlook, as Trina noted, to flat to positive 2% growth compared to 2023, and versus prior guidance of negative 2% to positive 2% growth. We are pleased by the momentum of our business coming out of the second quarter and the success of our Olympic campaign. As we mentioned last quarter, we are committed and focused on driving product innovation across scrubs and non-scrubs assortments, including new categories. As we evolve our product mix, we expect the shift into non-scrub wear, as well as the shift into new scrub wear styles to impact our gross margin. As a result, we expect our 2024 gross margin to be 150-200 basis points lower than the prior year. It is important to note that we remain confident that we can maintain healthy gross margins over the long term. As we invest in new innovation, fabrications, and product categories, we anticipate realizing economies of scale over the long run. We expect new innovation to provide a halo effect over our higher margin core business as we are working on several initiatives, including evaluating our pricing and costing, along with optimizing our supply chain strategies, which we will, which we believe will enhance margins over time. Regarding selling expenses, transitory costs are still estimated at approximately $13 million. A majority of these costs are now expected in the third quarter, including some costs initially planned for the second quarter. We anticipate the transition to be largely complete by the end of the third quarter. With respect to marketing, our increased investments are beginning to pay off. We are pleased with the results from our Olympic marketing campaign and continue to expect the bulk of this investment to be incurred in the third quarter. For G&A, we continue to carefully manage our expenses as we are identifying further cost efficiencies to offset our reduced gross margin outlook. As a result of these factors, we are updating our full year Adjusted EBITDA margin to the range of 9.5%-10%. Notably, as Trina described, we are not flowing the full gross margin impact to the bottom line, and we are instead expecting to offset some of the impact from marketing and G&A. Turning to our third quarter 2024 outlook, we expect net revenue growth of approximately 1%. We expect gross margin to have a similar trend year-over-year to what we experienced in Q2, largely due to our product mix shift that we discussed earlier. Looking at operating expenses, for selling expense, we expect deleverage of approximately 250 basis points compared to the prior year. With respect to marketing, we continue to plan for the highest marketing investment in the third quarter. These higher expenses will be partially offset by continued efficiencies in G&A expenses. To that extent, we expect third quarter Adjusted EBITDA margin to be approximately 5.5%-6%. ... Our capital expenditures expectation for 2024 continues to be about $18-$19 million, including $13-$14 million in fulfillment enhancer related costs. In closing, we're encouraged to see that our strategy around product innovation and top-of-funnel marketing is working and driving positive trends in our business. Moving forward, we'll continue to capitalize on our robust balance sheet and cash flow dynamics to strategically invest in our future growth and drive long-term shareholder value. With that, I will turn it over to the operator to kick off our Q&A session. Operator? If you'd like to queue for a question, you can do so by pressing star one on your telephone keypad. If for any reason you'd like to remove your question, you can press star two. Again, to join the question queue, please press star one. Our first question is from Brooke Roach with Goldman. Your line is now open. Good afternoon, and thank you so much for taking our question. Trina, I was wondering if you could elaborate on the consumer engagement metrics and the trends that you saw throughout the second quarter and into third quarter to date. What is your current assessment of the health of the FIGS consumer today in the United States? Thanks, Brooke, and great to speak with you. You know, we're seeing... We talked about this on the last call. We continue to see positive trends as it relates to repeat frequency, and that's really being driven by our product innovation, coupled with the top-of-the-funnel marketing. You saw this in Q2 with our launch of our Indestructible Collection. We tied that in with Dr. Chloe's story, and that worked really well. In Q3, I talked a little bit about it, but our biggest campaign ever, we have really incredible pinnacle products around our Olympics collection. That, coupled with all of the marketing we're doing around the Olympics, is really driving engagement. It's driving repeat frequency. It's driving a lot of positive trends across the business. In terms of the health of our consumer, I think it's, you know, it's great to see these trends. That being said, there's a lot of uncertainty in the macro environment. Our customer is still buying, you know, well below their purchasing from, you know, prior to COVID. Obviously, less than during COVID, but even prior to COVID. Prior to COVID, healthcare professionals are buying about 4-6 sets per year. We're well below that level on an industry level, and, but it's great to see that we're on the direction to normalizing from that perspective. And so, still a lot of uncertainty, a lot of noise, in the environment, but once again, we serve healthcare professionals. This is, as you know, the fastest growing job segment over the next 10 years. Incredibly stable consumer base, incredibly stable wages. And so our goal is to continue to serve them with great products, incredible marketing, and, you know, get them excited about what we're doing, and hope to kind of see that normalization generally across the industry as it relates to purchasing patterns. Great, thanks. And then just as a follow-up, can you speak to the current level of margin that you achieve between your core business versus the rate that you're seeing on new innovations that have yet to scale? What's the outlook for narrowing that gap between those two product lines going forward? And then, can you provide a little bit of color on the marketing pullback that's offsetting some of these incremental gross margin pressures for the rest of the year? Thanks so much. Sure. Okay, so as it relates to the margin, we, you know, we have a strategy that Pinnacle is driving core. Pinnacle product, as well as, you know, non-scrubwear. These are at a bit of a, a lower margin. They're not a huge delta, but a bit of a lower margin than our core scrubwear product. You know, as we gain scale, in our newer products, right, we will look to see similar margin curve as we saw within the core scrubwear. And the second piece is that, you know, we're already seeing some positive trends as it relates to Pinnacle driving core. So these new launches, these new styles, this new innovation that we're bringing to our consumer base, that's also driving them to replenish their core. As our core, and core follows pinnacle, as the core continues to build, we'll see the margin from that core pay for that margin on, on the newness. And so, those two things kind of combined, as well as, you know, Kevin mentioned on the call, opportunities around costing, around pricing. We're always looking at that and being super data-driven around, you know, capitalizing on margin opportunity across the portfolio. Your second question, was around how we're making up the margin, from a marketing G&A. So, in the third quarter, the, you know, there are two things that are happening. The first one being the gross margin that we talked about for this mix shift, right? This mix shift within scrubwear, mix shift to non-scrubwear, mix shift to within non-scrubwear. So those three things, which is literally all the innovation and newness, is driving that gross margin impact. The second thing that's happening in Q3 is this marketing campaign around the Olympics, and so that's driving the bottom line. Going into Q4, offsetting that, there's a number of opportunities that we found to kinda offset the impact on gross margin, and that's within marketing in the fourth quarter, as well as SG&A, as well as in SG&A. So, you know, I think we're just being strategic about how, you know, looking across the business to offset that gross margin impact, and I think, you know, we feel really good about that. ... Thanks so much. I'll pass it on. Our next question is from Bob Drbul with Guggenheim. Your line is now open. Hi, good afternoon. Hey, Bob. A couple of questions from me. Hi, Trina. The first one is just on. I know it's early, but you know, the Olympic marketing campaign, I think it's been incredible. What are some of the early learnings that you have been able to take away from it? How will it shape your marketing strategy going forward between brand messaging and performance marketing? Sure. Okay, so, as I mentioned on the call, this has been, you know, our biggest and best campaign we've ever done, and we're seeing the payoff. We're incredibly proud that we're the first brand to outfit the healthcare professionals supporting our Olympians, and so it's really a historic moment. I think we've learned a lot. It's been... You know, this net marketing campaign has really been next level. You know, we have a commercial that's airing in prime spots throughout the Olympics. We have taken over, as I mentioned, buses, subways, billboards. I think there's not a day that goes by that you're not seeing our campaign. I mean, we're just getting the feedback from our community and outside of our community, just how, you know, how large scale and how everyone's been really blown away by it. You know, we've seen the metrics as well, and so we're seeing, I think this is very much driving what we're talking about in terms of repeat frequency. It's also, we're also seeing our core business, improved. And so, and then in terms of engagement, which I think is really important, we're seeing we've been able to see 60 million impressions from our out-of-home, over 200 million paid digital impressions, 50 million linear impressions, and almost 500 million earned media impressions. And so, you know, I do think, as it relates to, to your question around shaping the future of how we think about marketing, top of funnel, top of funnel, top of funnel. You know, we're a real brand, right? And we're building this brand the right way, the hard way, over the long run. Yes, digital marketing fuels that top of funnel. Digital marketing fuels what we're doing from a product standpoint. But if you're not kind of building the message in an authentic way with your community, in all the places where they are, not just on social, not just on search, right? In all the places they are in the real world, you're kind of missing it. So we feel really good about our strategy around marketing, around top of funnel, around doing things others can't, right? We have the scale, we have the leadership position, to, you know, partner with Team USA on this. You know, not many can do that. And so, really just pleased by the team and our... and all the things we did to pull it off. And so, yeah, that's what I'll say about that. I hope that answers your question. It does. Thank you very much. Thanks, Bob. Bob, I forgot to mention the most important metric. Snoop Dogg does love FIGS, so I would check that out on his social as well. Our next question is from Dana Telsey with Telsey Group. Your line is now open. Hi, good afternoon, everyone. Hello, Trina. Just one follow-up on the Olympic marketing campaign, which loved the commercials, thought they were great. What doors is this opening for you for other marketing campaigns and how you see the brand resonating? And next, with the new product that you're introducing and the innovation, how do you see the price points of the innovation product versus the core and essentials? What is the consumer willing to accept, and how do you think about it? And lastly, with transitory fulfillment expenses, it sounded like there's a bit more in the third quarter that maybe it came out of the second quarter. How should we be thinking of that for the balance of the year? Thank you. Thanks, Dana. Okay. So the first, in terms of, you know, this campaign and what it does, I mean, we're still in it, right? So I think there's gonna be a lot of more learnings to come as it relates to what this is gonna enable us to do. I think it's giving us a lot of authority, to work with others, right? We have an incredible partnership with New Balance, super authentic, creating footwear for the best people we know and really designed to develop with them. You know, we're outfitting Team USA medical team in Paris, right? And that, that just delivers so much credibility in terms of what we do and really opens the door, to your point, for future collaborations with the best of the best, right? Across landscape, beyond healthcare. I think that's how we're thinking. How are we taking this brand beyond healthcare? In terms of the price point within our new product innovation, you know, our new product, as I mentioned, is outperforming, and the demand is there. And so we are being strategic and thoughtful around pricing, just given even... I think you saw, right, the first day of our Olympics collection, most of the products sold out before the first day was even over. So, just being really strategic and thoughtful around our pricing. At the same time, obviously, being affordable and accessible is truly very important to who we are and what we do, and so we need to ensure that our price points are in line with our community and, you know, and wanna ensure that we can serve everyone. But I do think there's a lot of opportunity there as we continue to see our new innovation outperform. Finally, your third question around transitory fulfillment. So you know, our transitory costs, we said on the last call, were expected to be $13 million. That's not changing. We're just seeing a shift between the second to third quarter, and so that's all that is. Thank you. ... Thanks, Dana. We have a question from Adrienne Yih with Barclays. Your line is now open. Great. Thank you very much. And nice to see the progress, Trina. Can you talk about sort of the trends in your TAM metrics? Where do you see those? You know, how are they trending? Secondarily, it sounds like you haven't talked about promotionality, so I assume that that has been anniversaried successfully. And then third, if you can talk about kind of from a longer term perspective, the non-scrubs is, you know, closing in on 20%. How do you see that kind of over the longer term? Like, where do you want that to be in terms of kind of the mix between scrub and non-scrub? Thank you. Thanks, Adrienne. Okay, so as it relates to our CAC metrics, you know, we feel really good about our marketing efficiency. You know, you're gonna, you know, in the third quarter, we talked about how our marketing expense is higher, and that's a strategic investment as it relates to true top-of-the-funnel marketing. As it relates to what we, when we think of CAC, we really think of that as digital CAC, right? How much are we spending across paid social, paid search? And that has been stable and efficient, and it gives us the opportunity to spend from a top-of-funnel perspective. And so over the last, I would say in 2024, we've really shifted funds to more top of funnel, which once again, a few can do, right? It's because we've been so efficient on our digital marketing, that we're able to invest top of funnel and really show up in big, amazing ways with our community. As it relates to the promotions, you know, we have a our promotional calendar this year is actually pretty similar to 2023. That is, you know, we're still working through our inventory balance. You saw our inventory balance come down by 29% in the quarter, year-over-year, and even while we've improved revenue. And so, you know, we feel about the cadence of promotions. We feel good about our ability to continue to move through our inventory, at the same time, bring innovation, bring awesome product and awesome campaigns to our community. As it relates to non-scrubs, Oh, sorry. Yeah. Sorry. Go ahead, Trina. Sorry. I got you. I wrote it down, so we're done. No. So as it relates to non-scrubs, you know, we are really proud, right? That, you know, only a few years ago, people said, "Are we really gonna be able to be more than a scrubs company?" And so the fact that 20%, almost 20% of our, of our business is non-scrubs, is a testament to our layering system really resonating with our community. People are coming, healthcare professionals are coming to FIGS for their underscrubs, for their outerwear, for their fleeces, their vests, their compression socks. By the way, Snoop Dogg does love our compression socks as well, for our footwear, right? So this is all really great. This is... sorry. This is really great as it relates to, the whole business. That being said, core scrubs, you know, we're seeing incredibly positive trends. Scrubs, scrubwear in general, seeing positive trends. So scrubwear, we expect to continue to scale and grow, right? That's the, you know, the, people are coming back more for their scrubs than the other pieces, right? So, as repeat frequency dynamics continues to improve, scrubwear across core and limited edition will improve, in addition to non-scrubwear. Non-scrubwear, as a reminder, is on shift. These are also replenishment pieces, and so we look to see that grow over time. But, it's not- we're not looking over time for this to be 50/50. I think, you know, we're gonna see where this goes, but I think both are growing and both are trending positively. Yeah. Fantastic. Kevin, just a quick question on the supply chain. Obviously, we're seeing, you know, costs, container costs increase. So two quick questions here. Are you seeing any... I know you're probably on contract, but even people who are on contract on the outer edge of the end of the year are starting to see a little bit of pressure build. Can you speak to that? And then secondarily, do you do a lot of, you know, manufacturing in Bangladesh? And if so, do you have any impact from what's going on there? Thank you. So in terms of the supply chain, you know, we're very focused on what's happening, and we do have contracted rates, so we're in a good position. You know, we do feel as though we're being strategic across our global supply chain, in terms of, you know, where we're producing all of our different categories and how we can gain efficiency across that. We do not produce in Bangladesh. Okay, great. Thank you very much. Best of luck. Thank you, Adrienne. Our next question is from Andy Wynn, with Raymond James. Your line is now open. Oh, hey, guys. Can you hear me? Yes. How you doing? Hey, it's Rick Patel. How you doing? I had a question on international markets. Sure. Can you unpack the growth that you're seeing there? You know, how do trends look like in like for like markets for some of the areas where you've been in for a longer period? And how should we think about the contribution of newer markets, you know, to the overall growth? Sure. So international growth for the quarter is 44%. So just I just wanna highlight this because it's important to adjust for the duty reclass. So really encouraged by what we're seeing in terms of our international business. We're continuing to localize by market and, you know, managing a number of different websites across markets, which has been an incredible undertaking. As I mentioned on the call, we're still early days. There's so much opportunity and we're excited to see the growth. Canada, U.K., Australia are our three, like, most tenured markets. They are performing and, you know, have very similar dynamics to the U.S. in terms of how often people come back, the AOVs, how much they're spending, and so that's great to see. The newer markets, there's been a few really big highlights. I know we talked about Mexico, continues to be, performing extremely well, the Philippines. And, you know, and then, then in terms of opportunities going forward, you know, we're not really other than the Philippines and Asia, so a huge opportunity there. And I think there's a lot more we can do in terms of the EU. We're working on a number of initiatives, actually from a teams perspective, as we see, a number of private practice and other concierge clinics really looking to outfit their team in FIGS. So the teams opportunity isn't just the U.S. We're seeing a lot of opportunity internationally as it relates to teams as well. You also touched on the potential to go deeper in international markets that have higher, you know, that, that are higher potential countries. Maybe some additional color there would be great. Yeah, I mean, it's early days in a number of the newer countries that we've launched this year. And, you know, I think you know our strategy. Our strategy around it is to really see that demand. We see the traffic coming to our site, we turn on these countries, we really see that demand before we invest behind it. And so, you know, it's, like I said, early days, we're seeing that demand, we're seeing the growth. And, you know, we look to invest in the highest potential markets, and we'll definitely give more color on them as we go, you know, as on our upcoming calls. Thanks, Trina. Nice progress. Thanks, Rick. We have a question from Ashley Owens with KeyBanc. Your line is now open. Hi, thanks for taking my question. This is Chandana Madaka on for Ashley today. I just kind of wanted to ask really quick, could you speak on your more functional consumer, like the one who more needs their scrub uniforms, how often they're buying? Maybe are there any dynamics there that set them apart that are a bit different from the more non-scrubwear oriented, if you're seeing any of that? And then secondly, there's been a good amount of exciting innovation and new styles, just Flare. So just kind of wanting to ask if you could point out some pockets within that outperformance, where you've been seeing the most excitement among consumers and what they're gravitating towards to maybe inform more of that lifestyle opportunity within the non-scrubwear categories. Thank you. Great. Thank you, Chandana. Okay, so in terms of our, you know, just thinking broadly about our healthcare professionals, they are buying the full layering system. So most of the time they're kind of coming in, starting with our core scrub wear. On their next purchase, maybe they're purchasing an outerwear item and an under scrub. Then they're coming back again to replenish their scrubs. And so that journey is very much the full layering system. We have very few customers that are only non-scrubs or only scrubs. It's really about that full journey of coming to FIGS for your whole uniform on shifts, right? You're wearing your under scrub on shift, you're wearing your scrubs on shift, you're wearing your outerwear pieces on shift. And so, you know, that's how to think about, like, who we're serving. As it relates to replenishment, how many sets a year are they buying? They're buying, and industry-wide, prior to COVID, they were buying about 4-6 sets a year. You know, the industry is below that today, just given COVID overhang, there was a stocking up during COVID, and we're still at this kind of lower point. It's been great to see some of that normalizing and that trend heading in a more positive direction. I think a lot having to do with our new product and driving that forward. But, you know, to see they're engaging with our newness on the scrubwear, they're engaging with our newness on non-scrubwear, is great to see. As it relates to what is outperforming within, I would say both, right? What's outperforming within scrubwear, we're seeing our Isabelle Wide Leg outperform. Wide Leg is a hot style, and our healthcare professionals love it. I would check it out, it's super cool. And then our scrub leggings. Our scrub leggings, not our, you know, our regular, and then our Flare. Both are performing incredibly well and outperforming expectations. Our Indestructible fabric was an awesome collection. It was, you know, more durable on the outside, soft on the inside, really meant to be worn on shift- outside on shift, in different environments that, you know, it's really demanding. And having products that help you perform is what we're all about. Having functional, durable, you know, comfortable products, that is what we do. And so, it's exciting to see all this innovation. I would say finally, our Olympics collection. I don't know if you saw our stadium jacket, I don't know if you saw our scrub jumpsuit, but these items are killer. I think they're both sold out, so I don't know if you can get those, but, you know, look forward to seeing what comes next. But thank you so much, Chandana. Got it. Very helpful. Thank you. Our next question is from Matt Koranda with Roth Capital Partners. Your line is now open. Hey, guys. Thanks for taking the questions. So super exciting to hear about the success with the Olympic campaign, and I guess that bodes well for growth. I'm just curious about how that fits into sort of the third quarter top line guidance that you provided. So are... Do we have a thought process where maybe we grow a little bit better than that 1% in kind of the campaign period in July and August, and then we're assuming a drop off after that? Maybe just unpack for us the third quarter guidance and maybe why some conservatism could be baked in there. ... Sure. Thanks, Matt. Okay, so we increased our revenue guide for the year, and we're very encouraged to see the positive trends in our business, including the frequency trends. And so, you know, that being said, the trends are recent, and we're cognizant of the broader environment. It is an election year, and there is a lot of news about a potentially choppy economic environment. So, you know, that's what you're seeing in the guide. Okay, got it. And then, maybe just around any behaviors you could highlight for your core consumer. I know you mentioned sort of repeat is coming back a bit, and we're normalizing in terms of total scrub sets being purchased. But what are you seeing from the consumer in promotional periods, non-promotional periods? Are you seeing sort of more concentration around those promotional periods that you run and then a drop off? Just curious about, like, kind of the cadence of how things go when you're promoting and when you're off promotion. Sure. I mean, I think, you know, it's been great to see in the last two quarters is really around our healthcare professionals and our community engaging with us in non-promotional times in a way that is beyond expectation. So it really is tied to launches of new products, new styles within scrub wear, new collections, like what we mentioned with the Olympics. And it's great to see. And so, I would say we've talked a lot about, you know, in the past, specifically in 2023, around how our community was engaging during promotional periods, more than expectation, given the environment. And I think this year it's great to see that it's the non-promotional times where the engagement is beyond the expectation. Okay, that's great. Could I sneak one more in just on the DC shift? I just wanted to make sure I understood. So the $13 million, we're assuming, all falls in the third quarter. I guess maybe just a little more detail on why that spilled out of the second quarter into the third, and just any potential that you see for those costs maybe to split between the third and fourth, like, or is there a risk that anything slips, or how should we think about that? So there's a little bit. Actually, that $13 million is across Q4 last year, Q1 this year, Q2 this year, and Q3, and actually a little bit in Q4. So that is not all in the third quarter. We're just saying that there was a shift between some of that transitory between Q2 and Q3. But that $13 million... Sorry, that $13 million isn't about Q4 last year, it's just 2024. But that $13 million is across this year, just a portion of it shifts from Q2 to Q3. Okay, got it. I'll leave it there. Thanks. We have a question from Nathan Feather with Morgan Stanley. Your line is now open. Hey, everyone. Really encouraging signs in the business, and particularly helpful to see frequency start to turn the quarter. You know, understand volatile macro, a lot of things going on, but does it feel like you finally reached the trough here? And how should we think about that metric picking up over the next, you know, kind of 12-24 months as you continue to inject new product? And then just one on the share buyback program. Interested to hear how you're thinking about potentially running the, the cadence or size of that. Thanks. Sure. Thank you so much, Nathan. So I think, you know, we are encouraged by the trends that we're seeing in repeat frequency. We're encouraged by a number of leading indicators, around, I mentioned branded search, open rates around our emails, net subscriber rates. All of, all of these indicators are headed in the right direction, but it's, you know, it's the recency of these, of these metrics that we're just being mindful of. And so, but it is encouraged to see, and we'll keep you updated as we continue to, as we continue to go. As it relates to the share buyback, you know, we're really excited to announce this. Our strong financial profile and long-term business outlook give us the confidence to be able to evolve our capital allocation strategy. As you know, we have sufficient liquidity and cash flow generation to both invest for growth and also return value to our shareholders. And so this buyback is gonna allow us to do this, and we're gonna be opportunistic over time. There's no end date on the program, and, you know, as we go here, we'll update you. Great. Thank you. Thank you. Our next question is from John Kernan with TD Cowen. Your line is now open. Good afternoon. Thanks for taking the question. Peter- Thanks, John. Where do you see the most operating leverage in the business as top line eventually reaccelerates? There's obviously been some, indeed, leverage on the Adjusted EBITDA Margin line in the last two years, and just curious where you think that you see the biggest opportunity over a multi-year period. Sure. You know, if you look at our financial profile, we, we have a structurally advantaged, advantaged financial profile. A lot of the decisions that we've made have been a real strategic investment for growth. And so from a gross margin perspective, as the Pinnacle keeps driving core, there's leverage there. From a selling perspective, those transitory costs are gonna roll off, and we are in a facility where, it's super automated. And as we scale, there's a ton of leverage there. From a marketing perspective, you know, as we continue to gain efficiency on digital, we're gonna invest in top of funnel, but still, overall, from a marketing perspective, there's leverage there. And then G&A, I would say, you know, we've been really disciplined around people, around spending, around... You know, just total, total, like, SG&A, and I think there's leverage there. So I know you asked for, like, where is the most leverage, but I do think I would say in SG&A, because it's transitory. It's like all that extra cost is transitory. Got it. And then just while you're on the topic of top-of-funnel marketing and some of the increase in marketing dollars in Q2 and Q3 of this year, you did see a nice sequential uptick in active customers from Q1. And just curious, you know, how should we think about active customers as we get into the back half of the year, given the marketing dollars are gonna rise again pretty significantly in Q3? Yeah, I mean, I think active customers is, is a great lagging indicator or lagging metric. It's an important metric, but it is an LTM metric. And so, you know, when you look at LTM active customers, which is what that is, you're basically still comparing it. And so to answer your question, we're proud of the growth in active customers, but we're comparing, we're being compared to still, like, a Q3, Q4, 2022 is still being pulled into that year-over-year growth metric. And so as we continue to go here, you know, that metric, we're super excited to have that incorporate a lot of the repeat frequencies that we've seen recently. And so I think we're excited about what's to come in terms of active, what's to come in terms of new customer growth, and what's to come in terms of resurrected. We've had an incredible number of resurrected customers. So it's, it's, you know... I think overall, active customers going forward will follow a lot of the more recent trends we're seeing in repeat frequency. Got it. Thank you. Thanks, John. Our next question is from Brian Nagel with Oppenheimer. Your line is now open. Hi, good afternoon. Congrats on the success here. Hey, Brian. Thanks, Brian. Trina, I wanted to dive a little deeper into this, the gross margin dynamic you're discussing with, you know, some of the new products. I guess the question I have, you know, is the impact of business we're seeing or you're telegraphing, is that simply a function of this product selling better than expected, or is there some type of shifting dynamic that's causing this to happen? Yeah, I mean, I think there's, you know, it is exactly that, right? Our new styles, our new innovation, our new fabrications are outperforming expectations. And so this gross margin is impacted by essentially three mix shifts. There's a mix shift within scrub wear, from core to limited edition. Limited edition, meaning the newness, the innovation. There's a mix shift between scrub wear and non-scrub wear. People buying more of the layering system and wanting our outer wear, wanting our under scrubs, wanting our footwear. There's a mix shift within non-scrub wear that's driving that as well. And so those three pieces together are driving the gross margin. That being said, there is so much that we're doing to, you know, to that we're excited about. So this pinnacle and newness is will, over time, drive more core. Because healthcare professionals are not only coming back for what's new, once they're there, they're coming also back for the core. Core, as you know, Brian, is at a much higher margin. So having the pinnacle drive the core leads to higher gross margin over time. Second, our new products, while I think I mentioned this, but as they have new, you know, lower margin, gross margin today, we will gain volume and scale from these new categories, from these new products. And we expect to see that margin curve grow in a way like what we've seen within our core scrub wear. Finally, we do believe there is opportunity within pricing, within costing, given how well these products are performing. And so we're gonna be really strategic in looking at those opportunities. And with Sarah Oughtred just joining us, we have a lot of opportunity there. And so this is all exciting and, you know, and over the long term, gross margin, you know, it, it—we really are optimistic about the opportunity. That's very... That's really helpful. And then my follow-up question: so you discuss, you discussed tonight, you know, some of the... or this afternoon, you know, some of the, the more upbeat, if you will, consumer metrics. But I guess the way I wanna frame the question is, so last time, on the last quarterly report, you know, you were discussing at that point, I think it was late in the quarter, maybe even early in Q2, you know, that you saw this improving consumer frequency, and this, and coincided with, you know, some of these new product launches. So the question I have is, you know, as Q2 progressed, and now as we've moved into Q3, are you still seeing that same improvement in frequency? We are. We are. The Olympics has been just an incredible campaign that, once again, is taking the strategy we've talked about, right? Pinnacle, awesome, limited edition, innovative product, combined with top-of-funnel, great storytelling, and an awesome campaign. So those two things together, the strategy of really these two things combining, driving the core, driving people back, it's working, and we've continued to see that trend that we talked about last quarter. Perfect. Well, thank you very much. Thank you. We have no further questions at this time, so I'll pass it back to the management team for any closing remarks. Thank you so much for joining our second quarter conference call. We look forward to seeing you again soon, and have a great night. That concludes today's call. Thank you all for your participation. You may now disconnect your line.