The manufacturer of medical clothing FIGS rose sharply after the report

The manufacturer of clothing for medical personnel, FIGS Inc. (FIGS) reported quarterly results better than analysts’ expectations. The news became the driver of the growth of quotations on March 9 by almost 23%. At the auction on March 14, the FIGS promotion cost $17.16. FIGS offers clothes that, according to many medical professionals, are comfortable, but more fashionable than standard uniform options.

This allows the company to get a higher margin than competitors. In the coming quarters, FIGS is targeting gross margin above 70% and adjusted operating margin above 20%. Medical clothing is a low-margin product, but the strength of the FIGS brand and the differentiation of design lead to such top results. Figs produce a new generation of medical uniforms – innovative patented materials, ergonomic and functional, they used design for its tailoring.

This, of course, affected the price — the cost of one set starts at $86. For comparison, it can purchase a standard set of medical clothing from other manufacturers at a price of $20. In the fourth quarter, FIGS revenue exceeded $128 million, and adjusted earnings per share, excluding GAAP, amounted to $0.09, which is significantly higher than analysts’ forecasts. In addition, FIGS management assumes sales growth to the range of $550-560 million, which is also more optimistic than Wall Street expectations.

The driver of growth is the focus on e-commerce. In addition, something usually replaced relatively often medical clothing, which gives the business the opportunity to earn a steady income as long as it maintains a strong relationship with its customer base.