Not gonna lie I’ve worn my jogger style figs scrubs as regular pants on a number of occasions to many non-medical associated outings. The only scrubs I’ve worn which are comfier are some customized tailored ones I even have and I’ve been wearing scrubs since 2013. With trendy face masks and a direct-to-consumer on-line mannequin that had become in style with investors, shares of FIGS quickly soared to $50. Four months after the IPO, in September 2021, FIGS introduced a secondary providing at $40.25 per share.
FIGs do not just make money the traditional method or necessarily sell bodily merchandise. They can even make income from borrowing at low-cost rates and then selling at higher rates. So they make money through interest earnings by transferring money around in money markets, by way of loans, and other deposits. FIG companies can characterize both public and private companies. Or, it can serve to help a personal firm go public.
While they’re well-made, garments don’t last endlessly and have to be changed fairly often. They don’t really have a moat, and they aren’t making massive income but, however the product and market seems strong to me; I imagine the remaining will include time. I suppose they dominate the scrubs market as a result of they’ve well focused their branding to be empowerment of healthcare employees. The model is everywhere and healthcare tradition tends to be very hype/conformist focused, like how Crocs began to dominate. Healthcare is extra resilient in recession than different industries, so I think they will fare okay in a downturn.
All of the knowledge provided comes from both the Prospectus, Finviz, Yahoo Finance, or the IR page of FIGS, and I can present specific reference on request. I think what happened at present solidifies my evaluation of the company and its inventory. Unlike actual garments people put bull put spread calculator on on the streets, they wont purchase extra of these since its work associated garments. Its a really area of interest product so its not a good suggestion unless you will get it at a extremely heavy discount. I obtained in at the $22 IPO value from RH so I lucked on the market.
A number of indicators level to the equities market being significantly overvalued as a whole right now; I doubt this can surprise anybody here. For lots of firms, the valuation has become somewhat indifferent from fundamentals, resulting in motion in stock prices based much more on sentiment than the rest. My concern is that this could turn out to be an issue for FIGS as it gains publicity and recognition.