2024-03-14 10:28:51 ET
Summary
- Figs is a DTC healthcare apparel retailer known for its premium quality scrubs, commanding a higher price than competitors.
- The company has a loyal customer base, with 70% of sales coming from existing customers, and a strong brand position in the niche healthcare apparel market.
- Figs faces challenges such as falling sales growth, margin pressure, and competition, leading to doubts about its valuation and future prospects.
Figs ( FIGS ) is a DTC healthcare apparel retailer, particularly scrub sets.
The company offers the highest-quality scrubs at a premium price, as much as 60% higher than competitors.
Figs has many characteristics of a struggling ex-growth name. It went public in 2021 at a valuation that is 90% higher than today's. Has enormous levels of stock-based compensation and guides about the meaningless adjusted EBITDA metric. Its growth has decelerated and is now guiding for a contraction in FY24. ...
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Figs Is Not Cheap But Is Not Dead Either