Scrubs maker FIGS soars in healthy market debut
In another sign of how strong demand was, FIGS priced its IPO above its expected range and sold more shares than planned.
FIGS is also making history as the first IPO that allowed Robinhood customers to get the stock at the IPO price as opposed to waiting to buy if after it began trading.
FIGS, unlike many other startups that have gone public in recent years, is also profitable. The company reported net income of $58 million in 2020 and earnings of $16 million in the first quarter of 2021 as its sales and customer base both more than doubled.
The company, which touts its scrubs as being more fashionable and comfortable than standard- issue medical apparel, also said in its SEC filing that is benefiting from the fact that “healthcare apparel purchasing has shifted from institutions to the individual, with approximately 85% of all medical professionals now purchasing their own uniforms.”
FIGS also noted that “due to frequent wear, healthcare apparel continuously needs to be replenished, resulting in highly predictable, recurring demand for such products.”
How FIGS got its start
The company, founded by co-CEOs Heather Hasson and Trina Spear, got its start in 2013.
After talking to medical professionals, Hasson said she realized there was demand for better-fitting scrubs that looked good and had better silhouettes instead of plain, boxy pale blue and pink uniforms.
Hasson and Spear told CNN Business they started selling apparel to doctors, nurses and nurse practitioners in Los Angeles in the parking lots of hospitals from their cars. Then they ramped up the business to make it a 24/7 online operation.
“It takes a long time to build a brand. You can’t start a company like this overnight and have people suddenly believe in you,” Hasson said.
“Health care professionals wore masks well before the pandemic. Mask and face shields are part of the professional uniform,” Hasson said.
