FIGS, Inc. (NYSE: FIGS) experienced a remarkable upsurge of 21.17% in its stock price, culminating the weekend session at a robust $6.81. This significant boost in FIGS stock value can be attributed to a strategic expansion initiative and the unveiling of its quarterly financial performance.
On the preceding Friday, FIGS Inc. (FIGS) unveiled its financial results for the third quarter of 2023. The company achieved a commendable growth of 10.7% in net revenues, amounting to $142.4 million, while concurrently realizing a remarkable expansion in its adjusted EBITDA margin by 17.2%, reaching $24.4 million, surpassing initial projections. Furthermore, this impressive performance enabled FIGS to generate $46 million in free cash flow during the quarter.
It is noteworthy that FIGS achieved a notable milestone by enlisting a larger number of healthcare professionals in its active customer base than in any prior year, demonstrating an effective execution of its strategic priorities. Additionally, FIGS achieved unprecedented growth in its international and TEAMS businesses while intensifying its engagement with its community through advocacy efforts.
In a separate press release, FIGS also made the noteworthy announcement that its inaugural permanent physical retail space, the “Community Hub,” was officially inaugurated on November 3, 2023. It is worth noting that FIGS has evolved into one of the foremost digital brands globally, generating an impressive $500 million in net revenues in 2022, with a predominant online presence.
In response to the fervent desire of its community to interact with FIGS both online and in person, as evidenced by the enthusiastic response to its retail pop-ups and community engagement initiatives, FIGS has ventured into physical retail expansion. The inaugural Community Hub was strategically placed in the heart of Los Angeles at the Century City Mall, one of FIGS’ prime markets. This mall attracts an annual foot traffic of approximately 20 million individuals and boasts five prominent healthcare clinics among its tenants, all within a ten-mile radius of six major healthcare institutions.
FIGS is committed to a methodical and well-considered approach to its retail strategy, opting for markets with a high concentration of healthcare professionals. The company’s next planned Community Hub is set to debut in the first half of 2024 at Philadelphia’s Rittenhouse Square, which is situated within two miles of five healthcare institutions. Notably, Philadelphia ranks fourth in the United States for its concentration of healthcare professionals, with one in every six doctors in the country having received their training there.
