Figs downgraded to Underweight at Barclays on inventory concerns

As previously reported, Barclays downgraded Figs to Underweight from Equal Weight with a price target of $4, down from $6. The firm’s promotional tracker shows promos in Q1 are running similar to Q4 levels and suggest that "consumers across all income brackets are pulling back" on discretionary product spending, the analyst tells investors. For Figs in particular, the firm remains concerned about rising customer acquisition costs and excess inventory, citing a potential for sales growth to turn negative as demand wanes.