FIGS, Inc. (NYSE: FIGS)

FIGS, Inc. operates as a direct-to-consumer healthcare apparel and lifestyle brand, focusing on serving healthcare professionals. The company aims to celebrate, empower, and serve those who work in the healthcare sector, offering technically advanced apparel that combines comfort, durability, function, and style at an affordable price. FIGS has redefined the healthcare apparel market by elevating scrubs and creating premium products that support healthcare professionals both on and off-shift. The company's mission is to help healthcare professionals look, feel, and perform at their best, 24/7, 365 days a year.

FIGS generates revenue primarily through the sale of its healthcare apparel and lifestyle products, which include scrubwear and non-scrubwear items. Scrubwear consists of tops, pants, and jumpsuits designed for both women and men, available in core and limited edition colors. Non-scrubwear offerings include outerwear, underscrubs, footwear, compression socks, lab coats, loungewear, and other apparel. The company also partners with New Balance to design and offer shoes tailored to the needs of healthcare professionals. FIGS sells these products through its direct-to-consumer digital platform, which includes its website, mobile app, and B2B business known as TEAMS. Additionally, the company operates physical retail stores called Community Hubs, providing a first-of-its-kind retail experience for healthcare professionals.

• Scrubwear: FIGS offers 17 core scrubwear styles available year-round, including four women's scrub tops, six women's scrub pants, one women's scrub jumpsuit, two men's scrub tops, and four men's scrub pants. These styles are offered in ten core colors and limited edition colors. The company frequently launches limited edition scrubwear styles and colors, transitioning some to the core collection based on customer feedback and sales performance.

• Non-Scrubwear: This segment includes base layer products like compression socks and underscrubs, as well as outer layer products such as footwear, lab coats, vests, jackets, fleeces, and loungewear. FIGS also offers necessities like scrub caps, lanyards, badge reels, bags, baseball caps, and beanies. The non-scrubwear products are designed to complement the scrubwear, creating a comprehensive layering system for healthcare professionals.

FIGS has established a strong position within the healthcare apparel industry, which is characterized by long-term growth driven by the expanding aging population, proliferation of chronic illness, and greater access to healthcare. The company competes with established wholesalers like Barco Uniforms, Landau Uniforms, and Superior Group of Companies, as well as aggregated retailers such as Scrubs & Beyond and Uniform Advantage. Additionally, FIGS faces competition from other direct-to-consumer brands like Jaanuu, Mandala, and Fabletics. The company's competitive advantages include its technical product innovation, focus on empowering the healthcare professional community, and high-quality brand image. FIGS's digitally native direct-to-consumer distribution strategy, supported by purpose-built Community Hubs, allows it to establish personal customer relationships and more effectively support healthcare professionals. The company's commitment to community-based marketing increases brand awareness and strengthens customer loyalty, further differentiating it from competitors.

The customer base of FIGS, Inc. is diverse and includes a wide range of healthcare professionals at various experience levels and areas of expertise. This includes registered nurses, nurse practitioners, orthodontists, dental hygienists, pharmacists, physical therapists, occupational therapists, veterinarians, sales representatives, estheticians, speech pathologists, emergency medical technicians, surgeons, and healthcare administrators. The company attracts a diverse range of healthcare professionals by offering a differentiated brand and premium products at an affordable price point. FIGS's customer mix includes a high proportion of students and young professionals whose earnings are expected to grow over the course of their careers, positioning the company to retain and increase engagement with these customers over time.