Figs Stock Price, News & Analysis

FIGS, Inc. (NYSE: FIGS) is a founder-led, direct-to-consumer healthcare apparel and lifestyle brand focused on serving healthcare professionals. According to the company, it creates technically advanced apparel and products that combine comfort, durability, function and style, with the goal of celebrating, empowering and serving current and future generations of healthcare workers.

While industry classifications place FIGS in surgical and medical instrument manufacturing, the company describes itself as a healthcare apparel brand. It designs and sells scrubwear and non-scrubwear items such as outerwear, underscrubs, footwear, compression socks, lab coats, loungewear and other apparel. The company notes that its relatively high average order value reflects the premium nature of its products.

Business model and go-to-market approach

FIGS operates as a direct-to-consumer business. The company states that sales are generated through its digital platforms, and it highlights the reach of its digital platform, brand awareness and value proposition as key drivers of growth. It tracks metrics such as active customers, net revenues per active customer and average order value to understand engagement and purchasing behavior.

FIGS reports that it serves healthcare professionals both in the United States and internationally. It also serves healthcare institutions through its TEAMS platform, which is referenced as a way to work with institutions in addition to individual professionals. The company generates most of its revenue from the United States, with additional net revenues from international markets.

Product focus and healthcare community orientation

The company emphasizes scrubwear as a core category, with separate reporting of scrubwear and non-scrubwear net revenues in its financial updates. Non-scrubwear includes apparel categories such as outerwear, knitwear and accessories as described in its news releases and prior descriptions. FIGS also introduces proprietary fabric developments, such as its FIBREx fabric, which it describes as engineered for functional durability and stylish design and relevant for healthcare professionals in varied environments.

FIGS repeatedly states that it seeks to build meaningful connections within the healthcare community it has created. It highlights sharing stories about healthcare professionals’ experiences, advocating for them and “always having their backs” as central elements of its brand identity. Campaigns such as outfitting the Team USA Medical Team at Olympic and Paralympic Games and creating one-of-a-kind garments to honor healthcare workers illustrate how the brand aligns marketing with its stated mission of celebrating healthcare professionals.

Geographic reach and customer base

The company notes that it serves healthcare professionals in numerous countries in North America, Europe, the Asia Pacific region and the Middle East. It also reports international net revenues separately from U.S. net revenues in its financial results, indicating a growing presence outside the United States. Within these markets, FIGS focuses on healthcare professionals and healthcare institutions, positioning its products and campaigns around this community.

Key performance and operating metrics

In its financial communications, FIGS highlights several key metrics that it considers important to understanding its performance:

• Active customers: defined as unique customer accounts that have made at least one purchase in the preceding 12-month period. The company views this as an indicator of growth, brand reach and platform effectiveness.
• Net revenues per active customer: calculated as total net revenues in the preceding 12-month period divided by current period active customers, used to assess engagement and retention.
• Average order value (AOV): calculated as total net revenues in a period divided by total orders in that period. FIGS notes that its relatively high AOV demonstrates the premium nature of its products.

FIGS also discusses profitability measures such as net income margin, adjusted EBITDA and adjusted EBITDA margin. It uses adjusted EBITDA and related margins as non-GAAP financial measures to evaluate its ability to generate earnings and to compare performance over time.

Stock listing and regulatory profile

FIGS, Inc. trades on the New York Stock Exchange under the ticker symbol FIGS. The company files periodic and current reports with the U.S. Securities and Exchange Commission, including Forms 10-K, 10-Q and 8-K. For example, it files 8-K reports to furnish quarterly financial results and to disclose material events such as amendments to its office lease that affect its headquarters footprint and lease obligations.

In a Form 8-K, FIGS described entering into a First Amendment to its office lease that consolidates its headquarters into a contiguous office space in Santa Monica, California. The company indicated that, compared to its remaining obligations for prior premises in the same building, the relocation and amended terms are expected to result in overall cost savings.

Corporate facilities and lease commitments

According to its 8-K disclosure, FIGS’ headquarters are located in a building in Santa Monica, California. The First Amendment to its office lease provides for relocation to a different floor in the same building, with a specified lease term, base rent schedule, rent credits for an initial period, renewal options and a right of first refusal for additional space. The company also notes that the relocation is expected to consolidate its headquarters into a single office space.

The lease amendment is described as containing customary provisions for real property leases of its type, and the remaining material terms of the original lease remain in effect except as modified. The company also discloses that the lease obligations for the relocated premises commence upon the earlier of certain specified dates tied to delivery and commencement of operations.

Financial reporting and outlook

FIGS regularly releases quarterly financial results and provides full-year financial outlooks. In its earnings releases, the company reports net revenues, gross margin, operating expenses, net income or loss, and adjusted EBITDA. It also discusses the factors influencing these results, such as product mix, promotional activity, tariffs, fulfillment costs, return rates and stock-based compensation expense.

The company provides outlook ranges for net revenues growth versus the prior year and for adjusted EBITDA margin. It notes that it does not provide a quantitative reconciliation of adjusted EBITDA margin outlook to a GAAP net income margin outlook because of the inherent variability and uncertainty of certain reconciling items, such as stock-based compensation, income taxes, non-ordinary course dispute expenses and transaction costs.

Brand, campaigns and partnerships

FIGS describes itself as a global leading healthcare apparel brand dedicated to improving the lives of healthcare professionals. Its communications highlight campaigns and partnerships that reflect this positioning. For example, the company has a multi-year partnership with the United States Olympic & Paralympic Committee that includes outfitting the Team USA Medical Team at Olympic and Paralympic Games, and it has created limited-edition Team USA-inspired collections associated with these events.

The company also references campaigns that honor healthcare workers in broader cultural settings, such as designing a one-of-a-kind tuxedo-style scrubwear garment for an awards show red carpet to pay tribute to healthcare workers. These activities are presented as extensions of its focus on celebrating and advocating for the healthcare community.

Risk considerations and forward-looking statements

In its press releases and SEC filings, FIGS includes cautionary language regarding forward-looking statements. It notes that statements about beliefs, expectations, outlooks and future performance are subject to substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied. The company references factors such as trade policy changes and tariffs as examples of external conditions that can affect its planning and results.

Investors and other readers are directed in those communications to review the company’s SEC filings for a more complete discussion of risks and uncertainties. FIGS also notes that certain information furnished in 8-K filings, such as earnings press releases, is not deemed filed for purposes of Section 18 of the Exchange Act unless specifically stated otherwise.