FIGS (FIGS) Goldman Sachs 31st Annual Global Retailing Conference summary

Industry trends and consumer environment

• Healthcare apparel is a resilient, non-discretionary $12B US/$80B global industry, with demand normalizing post-COVID.

• Current purchase frequency remains below pre-pandemic averages, but positive indicators are emerging in repeat frequency and brand search volume.

• Value-seeking is addressed through a wide product assortment and accessible price points, with core tops at $38 and pants at $48.

• The brand aspires to iconic status by focusing on product innovation and top-of-funnel marketing, despite macro uncertainty.

• Cautious optimism for H2 2024, with strategy centered on product launches and customer engagement.

Market share and growth opportunities

• Holds about 5% US market share and less than 1% internationally, with significant runway even in most penetrated markets.

• 70% of revenue comes from repeat customers, driven by a replenishment model.

• Brand awareness remains under 50% aided, highlighting growth potential across US geographies.

• Fit initiatives include standardizing sizing and expanding offerings from XXS to 6XL, with disciplined inventory management and donation programs.

Business channels and innovation

• Teams business, aligned with concierge medicine trends, is mid-single digits of revenue, grew ~50% last year, and is more profitable than e-commerce.

• Community Hubs (stores) in LA and Philly show strong performance, with 40% new customers and $1,800/sq ft sales, supporting omni-channel strategy.

• Innovation engine has accelerated, with non-scrubwear now 20%+ of business; outerwear and underscrubs are top non-scrub categories.

• Recent campaigns include outfitting Team USA’s medical team for the Paris Olympics, expanding brand visibility.