Medical scrub maker Figs Inc. has seen its stock price soar after opening a second retail location.
The Santa Monica apparel manufacturer for health care professionals said on Sept. 18 that it had opened a new retail shop in Philadelphia. That day its stock price closed at $5.57. By the close of the market on Sept. 24, the stock price was at $6.46, an increase of 16%.
The shares closed at $6.77 on Sept. 26.
According to a release from the company, Philadelphia made sense as the location of the Rittenhouse Community Hub because it has the fourth-highest number of health care professionals in the U.S., and one in every six doctors in the U.S. has been trained there. Additionally, Rittenhouse Square is located within two miles of five health care institutions.
Trina Spear, the co-founder and chief executive of Figs, said that she was excited to open the second community hub and to do it in Philadelphia, a city she called “the heart” of health care in the United States.
“Figs exists to help health care professionals look good, feel good, and perform at their best, thereby transforming the experience of being a health care professional,” Spear said in a statement. “To deliver on that, we believe that an omnichannel experience – both online and offline – is the future.”
The Rittenhouse Community Hub comes after Figs’ Los Angeles Community Hub in Century City. Since its opening in November 2023, the Los Angeles hub has brought new health care professionals to Figs, with over 40% of sales coming from customers who are new to the brand, according to the company’s release.
At over 4,200 square feet covering two floors, the Philly store is approximately four times larger than Figs’ community hub in Century City and includes an embroidery workshop and a mezzanine with a lounge and café.
Figs anticipates the opening of additional Community Hubs in 2025 and beyond, according to the release.
Most recent earnings
For the quarter ending June 30, Figs reported on Aug, 8 adjusted net income of $1.1 million (1 cent a share), compared with adjusted net income of $4.6 million (2 cents) in the same period of the previous year. Revenue increased by 4.4% from the second quarter of the prior year to $144 million.
The company attributed the jump in revenue to an increase in orders from existing customers, partially offset by a decrease in average order value.
During a conference call with analysts on Aug. 8 to discuss the quarterly results, Spear summed up the quarter by saying the company’s Olympics effort yielded “amazing products in an unprecedented, highly effective marketing campaigns.”
Figs had outfitted the U.S. Olympic and Paralympic teams’ medical staff with its uniforms and scrubs. There were also TV commercials, and ads on buses, subways and billboards.
“Our innovation machine is humming and we have impactful enhancements in site for fit and fabrication,” Spear added. “Our marketing is resonating and customers are coming back to our brand. International (sales) and community hubs are in the early stages of their long-term growth trajectory.”
