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Health Care Apparel Brand Figs Files for IPO

Figs Inc., a Santa Monica-based health care apparel brand, filed for an initial public offering on May 5, with plans to be listed on the New York Stock Exchange under symbol FIGS.

Co-Chief Executives Heather Hasson and Trina Spear founded Figs in 2013. The digital native brand sells 98% of its products through its website and mobile app. 

The company said its direct-to-consumer strategy enables Figs to “engage with our community of health care professionals before, during and after purchase.” 

This provides Figs “with valuable customer data and feedback that we leverage across our organization to better serve our community,” the company said in its S-1 statement filed with the Securities and Exchange Commission.

Last year, Figs’ community of active consumers grew from 600,000 to about 1.3 million, and about 60% were repeat shoppers. That helped the brand grow net revenue 138% to $263.1 million in 2020 and 172.4% to $87 million during the first quarter of 2021. 

Figs reported net income of $57.9 million in 2020, compared to a net loss of $300,000 for 2019. Net income for the first quarter in 2021 was $16 million, up from $4 million during the same period last year.

The company’s sales got a boost from the Covid-19 pandemic, during which more hospitals, medical offices and clinics were requiring staff to wear scrubs and other medical apparel.

“While we demonstrated consistent and significant growth prior to 2020, we believe the pandemic has accelerated awareness of the Figs brand and a shift in purchasing decisions that will continue to drive future growth,” the company said in its S-1 statement.

Figs scrubs are made with “proprietary fabric technology, called FIONx, (that) offers four-way stretch, anti-odor, anti-wrinkle and moisture-wicking properties,” along with “easy-to-access zippered pockets” to store stethoscopes, scissors, smartphones or ID badges, according to the company.

It also sells lifestyle and professional apparel, such as lab coats, outerwear, activewear, loungewear, compression socks, footwear, masks and face shields.

Figs’ founders have raised $60 million in outside equity capital to date. They plan to use net proceeds from the IPO for working capital, research and development and marketing activities, capital expenditures, as well as investment in technologies, solutions, or businesses that complement its business.

Figs has 202 employees and an embroidery workshop and fulfillment center in the City of Industry that is operated by a third-party logistics provider. It sources the majority of the fabrics used in its products from two suppliers in China, while other raw materials, such as content labels, elastics, buttons, clasps and drawcords, come from suppliers located predominantly in the Asia-Pacific region.

The company outsources its garment manufacturing operations to factories in Southeast Asia, China and South America.

Mediha DiMartino
Mediha DiMartino
Mediha DiMartino covers retail, manufacturing and the ports. She can be emailed here.

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