Figs at Consumer Growth Conference: Strategic Expansion Unveiled

On Tuesday, 10 June 2025, Figs Inc. (NYSE:FIGS) presented at the 25th Annual Consumer Growth and E-Commerce Conference, outlining its strategic plans amid evolving market dynamics. While the company is navigating challenges such as tariff impacts and distribution inefficiencies, it remains optimistic about its growth trajectory, driven by product innovation and international expansion.

Key Takeaways

• Figs is expanding internationally, with a recent launch in Japan and plans for Korea.
• The company is investing in product innovation with new fabric platforms like FormX and Float.
• Figs aims to enhance operational efficiency at its new distribution center by 2026 or 2027.
• A strong cash position supports potential share buybacks and capital reinvestment.
• The Teams business is a key focus, with an estimated 15% TAM in the U.S.

Financial Results

• Active customer base grew 3% in Q4 and 4% in Q1, indicating positive momentum.
• Average Order Value (AOV) is increasing, fueled by product innovation and differentiated offerings.
• Customers spend approximately $550 annually on uniforms, while Figs reports $210 in revenue per customer.
• The company maintains a robust cash balance of $251 million, with $48 million allocated for share buybacks.

Operational Updates

• Figs moved to a larger distribution center in 2024, aiming to scale to $1 billion in revenue.
• The new center’s inefficiencies are expected to improve, with costs returning to 2023 levels by 2026 or 2027.
• International presence has expanded to 34 countries, with localization efforts underway.
• Community hubs in locations like Century City and Philly are optimized for customer acquisition and brand presence.

Future Outlook

• Figs plans to acquire new customers and boost AOV through continued product innovation.
• The company is expanding the Teams business with a focus on outbound sales.
• International growth includes launching in Korea and considering a 3PL model to streamline distribution.
• Figs is mitigating tariff impacts through strategic partnerships and cost optimization.

Q&A Highlights

• Improved demand dynamics are noted as the COVID overhang diminishes.
• Figs is differentiating itself from competitors through innovation, branding, and advocacy for healthcare workers.
• The company plans to use its cash reserves for business investment and potential share buybacks.
• Figs remains profitable in all international markets, focusing on localization to drive growth.

Readers are encouraged to refer to the full transcript for a comprehensive understanding of Figs’ strategic initiatives and market positioning.

Full transcript - 25th Annual Consumer Growth and E-Commerce Conference:

Brian Nagel, Senior Equity Research Analyst, Oppenheimer: Well, good morning. Thank you all for joining us. My name is Brian Nagel. I’m the senior equity research analyst here at Oppenheimer covering consumer growth and ecommerce. So this is our twenty fifth annual Oppenheimer consumer growth and ecommerce conference.

We very much appreciate, you all attending. So I’m pleased to have with us our next presenting company, Figgs, and three of the company’s senior executives. Katrina Spear, founder and CEO, Sarah Autredd, CFO, and Tom Shaw, senior vice president of investor relations. So thank you all for joining us.

Katrina Spear, Founder and CEO, FIGS: Thank you for having us, Brian.

Brian Nagel, Senior Equity Research Analyst, Oppenheimer: So we’re gonna structure this as a informal, fireside chat with me asking questions and the FIGs team answering those questions. To the extent there are questions from the audience, just send them through the chat, I’ll be happy to work them into our conversation. So I thought, Trina and Sarah, I thought we’d start, before diving into the specific operations of FIGs, that we’d start with just some maybe broader questions that are really topical for investors at this point. I would love to get your thoughts on, you know, especially from your new unique perspective of just the health of the consumer, you know, particularly the the the target consumer for figs.

Katrina Spear, Founder and CEO, FIGS: Sure. And thank you, Brian. I think it’s important to note that, you know, we kind of went through this period during COVID, right, where we are serving health care professionals, and we served them during pretty unprecedented time during COVID and had an acceleration in our business. I think, you know, coming out of that, we were in a bit of a COVID overhang in 2023 and in 2024, and we’re really excited to see that, we’re coming out of that and looking to be in a more normalized period going forward. Health care professionals are the backbone of any functioning society and are needed, around the world so that we could all, you know, live and have healthy lives.

And so, you know, it’s it’s it’s great to see that, you know, they’re turning once again to figs, for their uniforms so that they can go to work and do their jobs. You know, our whole goal is to help, health care workers look good and feel good and perform at their best. We do that with a broad product line across scrub wear, outerwear, under scrubs, footwear, to help health our health care professionals go to work, at work, you know, go from work, be on shift, off shift, and really outfit them head to toe. And so, you know, we’re starting to see and we’ve now had three quarters of positive repeat frequency. We’re starting to see our community come back more often to not only to replenish their uniform, but also to buy other stuff, and engage with us and and and engage with our product line and with our brand.

And so really excited to see, a more, you know, stabilized period, and improving demand dynamics across the board.

Brian Nagel, Senior Equity Research Analyst, Oppenheimer: It’s really amazing. I’d love to dive a little deeper into that. Mean, what do you think is helping to drive this this this this improving demand dynamic? Is it is it more internal with what FIGs is doing, or is there an external element as well?

Katrina Spear, Founder and CEO, FIGS: I think there’s there’s two things. I think, off, there is an industry tailwind. Right? You know, coming out of COVID, you know, is helping the industry. Health care professionals, you know, had they had stocked up during COVID and now have worked through that and now need to replenish in a in a more normalized in a normalized way.

In addition, you know, there’s a lot of things that we’re doing as a company, broadening our product line. You saw that with the launch of FormX, which is an entirely new fabric platform, within our scrubwear assortment. Now we’re gonna be building off, you know, our silhouettes in FormX, our color strategy in Formex, and that’s really exciting. Similarly, with an outerwear, you saw the launch of float. That’s a completely new fabric platform.

Once again, can build, you know, building our strategies and business of that. And so, you know, we’re seeing UPT AOV increases. Right? People are adding more, you know, more differentiated product to their cart, you know, and they’re also engaging with differentiated product, not just online, but also in our community hubs. And stores is a huge opportunity for us.

We only have two in The US. We’re launching a few more this year. We talked about Houston, which we’re really excited about. And that’s you know, our health care professionals are coming into the store. They’re engaging not just with scrubber wear.

They’re engaging with our outerwear, our under scrubs, our compression socks, our footwear. We have an amazing collaboration, as you know, with New Balance, and that’s really exciting to see because you’re able to try on and feel and touch the product, and, really, that’s driving, a lot of the demand as well.

Brian Nagel, Senior Equity Research Analyst, Oppenheimer: That’s very helpful. So, Nita, sticking with this, you know, and I’m recognizing you you you have guidance out there for the current year 2025. But maybe, Sheryl, I’ll jump over you. If you guys were looking at this better demand dynamic start to take hold and then kind of recognizing the key components of your sales growth algorithm, what needs to continue to happen to get figs back to what we would consider kind of a normalized top line growth algorithm?

Sarah Autredd, CFO, FIGS: Yeah. I think that, you know, our product innovation engine and our marketing engine behind it is really starting to work. You know, we’ve sort of repositioned some things, and we’re really seeing some great traction. And what we need to continue to see is that, you know, acquiring new customers and growing our active customer base. And so, you know, we we had grown the active customer base 3% in q four, but we did see an inflection in that into q one where we actually grew our active customer base 4%.

And so, you know, we’re continuing to grow our market share, and that will grow our active customer base. Along with that, we’ve been growing our AOV, and that’s really through a lot of the things that Trina spoke to that’s working on the product side. So so together, those two pieces, will really fuel our growth into the future, and we’re seeing a lot of green shoots within both of those areas.

Brian Nagel, Senior Equity Research Analyst, Oppenheimer: And how should we think about kind of what we’re playing for in in terms of, you know, maybe maybe not going to a specific timetable But, you know, again, as we’re seeing this, the top line come back to life, you know, what are kind of what are we playing? What what what type of growth would would would would say that, okay. Oh, we’re now fix this back to where it should be.

Sarah Autredd, CFO, FIGS: Yeah. I mean, I think there’s a lot of opportunity ahead for us. We’re still up against some promo strategy shifts. So while the underlying business is doing well and we are seeing good growth rates in our, what we would call, business as usual and non promo days, We’re taking that opportunity to reset where we’ve been from a promo perspective, and that’s both how we want the brand to show up in the future and really just a function of where inventory has been. We’ve, you know, come out of a really high inventory position coming out of COVID and needed promo to clear that.

So there’s a bit of a headwind underneath as well just as we comp over some of these promo events. But, you know, we do think that we can continue to grow the business. If you look at it this way, you know, we have 2,700,000 active customers. And within The US, there’s, you know, 22,000,000 health care professionals and over a 100,000,000 health care professionals worldwide wide. So there’s a, you know, a good runway for us to continue to build the brand and serve more health care professionals worldwide.

Brian Nagel, Senior Equity Research Analyst, Oppenheimer: So I wanna talk again, you know, and the topic that’s very top of mind, if you will, for investors at this point is trade and and and tariffs. So I’d love to get your your perspectives on, you know, what you’re seeing in the tariff front. How FIGs is is is sort of, say, dealing with tariffs and maybe mitigation efforts going forward as you see this continuing to unfold?

Katrina Spear, Founder and CEO, FIGS: Yeah. I mean, think we’re in, as you know, a very fluid trade backdrop. I mean, I think we’re evaluating this as with rest of the world, and really looking to, partner even more closely with our manufacturing partners around the world. I was just in Vietnam last week. A lot happening, there.

And, you know, we’re looking to, offset this. Right? Offset this through our partnerships with our manufacturers. Also thinking about where else in the p and l we can offset. I’ll let Sarah address that part.

But I think at the end of the day, you know, we’re building the company over the long run. Right? And so and controlling what’s in our control. And and I think, you know, having relationships for over a decade now, around the world, having this robust supply chain, having partners that, you know, are are it’s it’s amazing to see what FIGS means to them. Right, because we’re such a replenishment driven business, because we’re a nonseasonal business, because we have this really tight assortment where we’re able they’re able to kinda manage their business as well, and we are able to keep their lines moving.

That’s meaningful from a supply chain perspective and is a function not only of our scale and how long we’ve been around, but also a function of being a uniform company. And that’s really beneficial for us as we look to continue to navigate, the tariff environment.

Brian Nagel, Senior Equity Research Analyst, Oppenheimer: Katrina, you talked about, you know, just having visit, partners in in in Vietnam. I mean, maybe talk, more specific, like, you know, how how are those conversations going? I mean and and and how do you view this, Sarah, to get you in the conversation? But, I mean, how how do you view the potential mitigation efforts as this as this unfolds?

Katrina Spear, Founder and CEO, FIGS: Yeah. Sure. I think from a relationship perspective, like, you know, like I said, we have incredible relationships with our partners, and, they want to help, you know you know, share in this share in this cost. Right? This is a real cost.

And, and and how do we partner together to make it to make it work for everybody? And, really, with the goal of of ensuring that our health care professionals, you know, they’re the last, on the list, right, of who’s gonna who’s gonna take this on because at the end of the day, you know, health care workers are, you know, we need them, and we need to ensure that our products are affordable and accessible, to them. And so that’s where we’re focused. Sarah, do you wanna take the other part of the question?

Sarah Autredd, CFO, FIGS: Yeah. So just in terms of the mitigation efforts, you know, we, as Trina said, have been actively working with our supplier base. You know, we’re also looking across the p and l at opportunities of where we can go after, you know, cost savings. And so we’ve set up a plan to really look at our inbound, you know, costs as well as outbound costs. You know, we are making sure that we are continuing to invest in the business to drive growth, by making sure that we’re, you know, being selective with, how we how we spend our dollars and, you know, just setting up for how we can be smart to offset, you know, some of these costs.

At the same time, you know, like, we have a fortress balance sheet. We have no debt, and we have a really significant amount of cash, and that should help insulate us going forward. And so, you know, that that balance sheet gives us flexibility in terms of of how we navigate this and how we may succeed versus other companies. So we also have have that to, you know, really help us manage whatever comes in the way of tariffs.

Brian Nagel, Senior Equity Research Analyst, Oppenheimer: So let’s talk just a bit about and and gets this this should be more maybe for, clients, investors that are not as familiar with space, but just the the competitive landscape. So you’re in a unique spot, you know, with with with within retail and the and the customer you serve, but and you’re, you know, a big player in a just like you’ve mentioned, very fragmented space. But how do you view competition across the space? And has there been any, sort of, say, evolution in the competitive in the competitive set over time?

Katrina Spear, Founder and CEO, FIGS: Mean, I think that, you know, we’ve seen really two parts of the competitive landscape. There are the companies that came before Figs that, you know, are really stuck in the strip mall. And so, before Figs, health care professionals, you know, were shopping at, in where you walk into a store, there would be a rack of black, a rack of navy. They would be selling medical supplies like bedpans and knee braces, in the same place they were buying their uniforms, and it was really a bad experience. And not only was the experience awful, but the product wasn’t great.

It was, you know, companies that were really buying fabric off a wall, putting somebody else’s label on it. There were all licenses that they were then selling to these stores. I mean, that was the industry. We call it the anti moat. Right?

Because they’re really stuck in that outdated world. And then there are newer companies that have come behind Figs that are are really small, right, or subscale, that have tried to copy what we do. We haven’t seen anything too interesting on that front, and and our goal is really to continue to lead the way and continue to lead the industry. We have to be, better and smarter and faster than everybody else as we look to serve our community in the most meaningful way. Our mission is to serve those who serve others.

And so a part of that is sometimes really not even looking left or looking right because, you know, we’re really defining what the future will be. We’re defining what this industry will be. We’re defining, what the experience of being a health care professional will be. You know, I’m I’m actually on my way right after this to Washington DC, to fight, for health care professionals’ rights and get on better pay and better training and safety, mental health support. That’s a big part of our advocacy pillar.

And, you know, advocacy is a huge part of what we do, a huge part of the brand, and really once again differentiates us from everybody else. You have to have the best products, which we do, the best brand and marketing and showcasing, health care professionals, the best of them back to them, and then fighting for them from an advocacy perspective is part of it as well. And so I would say over the last few years, even as we’ve been in this COVID overhang, we actually widen the moat, right, between us and everybody else. And our goal over the next ten years and beyond is to do that even further and be the brand, a global iconic brand, for this community, and I think we’re on our way. But it’s about doing things that, you know, you know, others probably don’t think are as important because the return on that isn’t seen right away.

And it’s about being an authentic brand and serving people, in all of these different ways. I’m and we’re super excited. We’re actually going to DC with, Noah Wiley from The Pit. If you haven’t seen The Pit, it’s on I’m doing a plug now for TV shows. It’s on HBO.

Check it out. But it really showcases the experience of being a health care worker and what that’s all about, and how at times that’s really hard, and we get to be that brand that shows up for them, during those hard moments.

Brian Nagel, Senior Equity Research Analyst, Oppenheimer: That’s very helpful. So I’d also I wanna talk about, you know, there’s been some, I say, investment in in in the business over the past several quarters, particularly on the on the distribution side. So maybe we could, just kind of update where we are on those investments. You know, where the the benefits we’re starting to see now, this new, more innovative or, I guess, advanced would probably better word distribution infrastructure and kind of where we go from here.

Sarah Autredd, CFO, FIGS: Yeah. I can take that, Trina. So we, in 2024, moved our distribution center. We had outgrown our previous distribution center, and we’ve moved into a, you know, much larger state of the art facility, and put investment behind that. And that distribution center will allow us to scale to a billion dollars.

And it is state of the art. We’ve invested in, you know, robotics that will help us, scale to our peak promo levels, and efficiently run the day to day. And, you know, we had incurred, you know, some onetime costs in 2024 to make that transition. And we do have, you know, some inefficiencies as we started out operating in this new facility. And as each month goes on, we are improving and seeing the efficiencies come.

It will take a bit of time in terms of how we will get back to the same cost structure as before, and that is largely largely just due to the fixed cost structure of having a, you know, lower capacity right now, and having the opportunity to ramp into it. So we do believe that we can get our selling costs back to a more, you know, comparable level to 2023, probably by 2026 or 2027 and be able to to leverage after that. And that’s really just driven by, you know, how quickly we can scale our revenue, and increase capacity at the new facility.

Brian Nagel, Senior Equity Research Analyst, Oppenheimer: And, Sarah, maybe discuss it. Are there facilities you’re opening to support? I I wanted to talk about your international expansion as well. But are you looking at, you know, similar type distribution investments outside The United States as well?

Sarah Autredd, CFO, FIGS: So, if we, if and when we do open another distribution center, we don’t need to have it as an owned model like we have We think that there is opportunity, you know, as we scale international to potentially evaluate a three PL option. So it wouldn’t have the same investment profile. There would be some small upfront to manage that transition, they’re, you know, in a small CapEx build out, but nothing to the extent of the facility that we’ve done now. And so, you know, we’ll continue to evaluate as part of our roadmap in 2026, you know, where an additional facility might make sense.

And, you know, for for international, how that could benefit our p and l is reduction in in duties, shorter shipping time to customers, which would then come with, you know, efficiencies as well. So there’s some some good benefits there, and we just need to, you know, focus this year on, optimizing and tuning the distribution center that we have. And, you know, a next step would be to evaluate, you know, a potential international 3PL location.

Brian Nagel, Senior Equity Research Analyst, Oppenheimer: That’s perfect. So it’s a good segue to, I know Trita had mentioned before, you know, some international growth. But so I guess, like, want to think how how has FIG international has been a big piece of the story? You know, how do you how do you view, you know, continued expansion outside The United States? And then importantly, how do how do you balance that with, you know, the business in domestically, The United still United States still young?

I mean, how do you balance this focus on international and domestic?

Katrina Spear, Founder and CEO, FIGS: Sure. So I think, you know, I really, we’re really pleased to see the growth from an international perspective. We’re in now 34 countries. We just launched Japan last week. Right?

I was in Vietnam. I’m like, where are we in the world? We just launched Japan, which is super exciting. And, you know, I think we’ve talked about how we’ve been localizing market by market, and that’s really exciting. As an example, in The Middle East, you know, we have a huge job with holes in, for your stethoscope, you know, really localizing the product to the market as well as our marketing and really understanding the nuances within each market, as we look to, you know, really be a global brand for the health care community, and we’re well on our way.

Our products resonating. Our brand is resonating, in markets like Australia, Mexico, The Philippines, now hopefully Japan. And so that’s really exciting to see, and there’s so much of the world that we still haven’t even gotten to. And so, you know and and, also, I think it’s been surprising in some markets like Mexico or The Philippines where, you know, the purchasing power isn’t as high and to see the growth in that market and the growth of the health care community really engaging with Figs, a premium brand in that way, is also really exciting. And so, you know, a lot more to do, a lot more to build.

We are just digital. We only have two stores in The US. We are only digital in all of these different countries, and so that’s also a huge opportunity over time, to have, you know, pop ups in stores and community hubs around the world. But it’s early days and excited to see what we’ve been able to achieve in the markets that we’re in. And, Sarah, I think there’s another part to the question if you wanna take that.

Sarah Autredd, CFO, FIGS: Yeah. And, I mean, like, how we balance international versus US growth. I mean, like, the way that we’ve structured, we have an international leader, and we’re, you know, building out the international team to really be able to focus on any of the localization and nuances that are needed to really grow these international markets. So that’s where we’re investing is building that out and looking at you know, we’ve we’ve seen really great growth by just opening up these markets using the same playbook that we did to open The US. And now the work is really, focused on localization, and we’ll need local teams to help us with that.

So that’s what we’re setting up. And, you know, we will we have the opportunity to both grow more markets and open more markets as well as really, you know, increase market share in the markets that we’re in. And so that’s what we’re we’re set up to do. You’ll see Japan come on this year, Korea come on this year as new markets, and, you know, and we’ll continue to share as we, open, future markets, as well.

Brian Nagel, Senior Equity Research Analyst, Oppenheimer: And what’s the it is you as you as you talk with these markets, the through the training mentioned the 34 markets and some of the more recent additions. What’s the what’s the typical I mean, what what for for phase to go into a new market, how should we think about the investment needed to do that?

Sarah Autredd, CFO, FIGS: Yeah. So, you know, it is, some investment, but it is not significant as we, you know, enter through ecommerce, and we’re able to leverage the platforms that we have. So through Shopify and Global e, that does allow us to turn on any country that we want. You know? And then where the investment comes is really the rate in which we turn on, you know, digital marketing, performance marketing to go after acquisition.

And so that’s, you know, been our practice. As we enter more complex markets like Asia, you know, we are investing in some, you know, market research to make sure that we’re understanding the needs of that health care professional, our positioning. And so there’s some investment there. And then we would also, you know, make some small investments into building out ambassador networks, so that we have, you know, that local knowledge, that person that’s going to be, you know, spreading word on our brand. But, you know, none of these are are massive investments, and, you know, we can scale the rate of that digital marketing so we have some flexibility on that as well as we monitor, you know, sort of sales in each of those regions.

We are profitable in all of our international regions, which is is really exciting. You know? And over time, we have the opportunity to improve our profitability as those businesses scale. And, you know, as I mentioned before, you know, depending on where we place, any future, you know, supply chain networks, that will also create favorability as well in the international profitability.

Brian Nagel, Senior Equity Research Analyst, Oppenheimer: Right. So let’s talk a bit about the the Teams business. You know, know I know this has been a, you know, a growing focus, if you will, for for for FIGs. But maybe discuss, you know, Teams, how and how this is becoming a a potentially new, more powerful driver of growth for the company.

Katrina Spear, Founder and CEO, FIGS: Yeah. Teams is a really exciting opportunity. You’re seeing within concierge medicine, this massive focus on more personalized medicine. You know, you have your I don’t know, Brian, if you have yet your medical records on your phone, but everyone’s kind of looking to just go around the corner from where they live and get their blood taken, their Botox in fill, frozen, their dog taken care of, and and and preventative medicine, their genetics, testing. And so, there’s a really huge, push where concierge medicine is gonna be growing from about 15,000,000,000 to 30,000,000,000 over the next decade.

And these these groups, right, these health care institutions are looking to partner with Figs to help them brand and standardize their teams. And that’s really exciting for us. Right? And and, you know, we are the leader in the space. And so having that partnership like VEG, for instance.

VEG is a you know, they have over a 100 hospitals now. It’s a veterinary emergency hospital. They’re adding 25 new hospitals a year. So they have over 10,000 employees. All of those team members are now, in figs, which is exciting.

And so, and there’s more to come on that front. And we are building out our outbound sales force to not only just, you know, over the last decade plus, these institutions have come to us from an inbound perspective. We’ve taken their order, and that’s great. And we built amazing technology to serve them very well. But the future is not just doing that, but also, going outbound, right, and finding these institutions that are very much aligned with us and with our brand and are looking to outfit their teams in the best product.

And so much more to come in terms of where we go from here, but, Teams is, an exciting new business, for the company, and, we’ll have much more to talk about in the future there.

Brian Nagel, Senior Equity Research Analyst, Oppenheimer: So is there any way to size the so to say, as you as you get teams going or and now able to, you know, much better cater to these type of customers you described, the expansion, the TAM, if you will, for for FIGS?

Katrina Spear, Founder and CEO, FIGS: Yeah. I mean, it’s about, you know, like, if we take that $12,000,000,000 industry number for The US, it’s about 15%. 85% of health care professionals buy their own scrubs, 15% are bought by the employer, the administrator. And so if you were to take that 15%, you could say that’s kind of the TAM for The US. Globally, actually, b to b or, you know, institutions buying for their team is actually much bigger than that 15%.

You know, it’s it’s it’s higher. So teams actually internationally is really exciting opportunity as well, and there’s a lot of, synergies there. I think, you know, if you, but back to this point around concierge medicine, it’s growing so fast that these TAM numbers are kind of outdated in a way because medicine is changing. Like, even take, like, fertility. Right?

Like, an egg freezing. Like, that is a industry that’s just blowing up. Right? And and and and and similarly, right, within aesthetics and cryo. Like, these are these are newer industries that are gonna be completely different two, five, ten years from now.

And so, you know, looking at the TAM today is not really an appropriate or is not fully representing what this will be in the future.

Brian Nagel, Senior Equity Research Analyst, Oppenheimer: So now our time’s gonna start to wind down. There’s a couple more topics I wanted to discuss. So this and I think we touched on this already, but, you know, the expansion of the product line beyond, you know, traditional scrubs or health health care. You know, so maybe talk about that. You know, are you is this really geared towards, you know, further outfitting an existing customer or are you bringing a new customer into the FIG’s family?

Katrina Spear, Founder and CEO, FIGS: We’re doing both. We gotta do we’re really, you know, we have amazing loyal customers. Figs, you know, we have this diehard fanatical community that’s obsessed with us, and we’re obsessed with them. And so, you know, what else how can we serve them in more ways? Right?

So that the core uniform, their scrub wear, super important. But, you know, they need jackets and fleeces and vests. They need under scrubs and compression socks and shoes. They need scrub caps and all of these different products to go out and do their job and do it well. And so, you know, bill health care professionals spend about $550 a year on their uniforms.

Our revenue per customer is about $210. So taking that share more of that share of wardrobe is super important and a huge opportunity, and we’re focused on it. Right? We’re focused on what we would call repeat frequency, how often health care professionals are coming back. Over time, you’ll see, you know, that number two ten move up, or we’d love to see that move up.

That will show how we’re taking that share of wardrobe, and that’s all about a focus on retention, right, and repeat customers. On the other side, you know, getting new health care professionals into the FIG’s family is super important. There’s a 140,000,000 health care professionals around the world. We have 2,700,000 active customers. Right?

So massive opportunity, to get more and more health care professionals into, Figs. And and, you know, I do think community hubs is a big part of that, and we haven’t talked about stores too much. You know, take our most penetrated market, which is Los Angeles. And you say, oh, wow. Well, you know, how how many more new customers are there in Los Angeles?

Well, you know, 40%, of our sales or 40% of the customers that have bought within Century City our community hub in Century City are new customers. Right? So there are people that just don’t shop online. They want to feel in touch and try on the product. That’s a huge opportunity.

Right? And so having, you know, a physical presence where people can come in and experience the brand in person is great. And so, focused on, the the the full community and and really look to see, more and more health professionals, join, what we’re doing at FIGs, and that’s a really exciting opportunity in the future.

Brian Nagel, Senior Equity Research Analyst, Oppenheimer: Yes. So, Trina, you can mention let’s mention quickly the the community hubs. I know I’ve visited, you know, a few times the the facility in in LA. We we visited, you know, with you got an Analyst Day in in Philly. So I think you mentioned a moment ago Houston.

I mean, how how should we think about kind of the growth in these community hubs and maybe maybe some, indications of ongoing success there?

Katrina Spear, Founder and CEO, FIGS: Yeah. I mean, so we’re opening Houston, and there’s more to come. And so I think, like I said, like, I think we, really feel as though it’s important for the brand to have a physical presence, and have people kinda come in and try and feel and touch our new fabrications. FormX is a perfect example of this. FormX is a new fabric platform within our scrub wear.

FormX is actually performing better in our stores than it is on our site. Right? And that’s just a testament to people being able to feel and touch and see the product firsthand in person. So that’s really exciting. In terms of you know, we’re learning a lot.

Right? Century City is a little too small. It’s about a thousand square feet. Philly is bigger. It’s 4,000 square feet.

It has two floors, and that’s really great. And Houston’s gonna be somewhere in between. Right? It’s like Goldilocks. So we’re finding the right, the right format, the right locations, in the best cities around The US and eventually around the world.

And it’s, you know, I think we’re in a perfect position from that perspective where we the brand is there, the product is there, and now having this additional channel where you can come, and and it’s very much like destination. We’re within, you know, a few miles of of the largest health care institutions. Take Rice Village. The amount of health care professionals in Rice Village in Houston is incredible. You have MD Anderson.

You have, Texas Medical Center. It’s I mean, it’s huge, and having that place where people can come, is game changing. And so, much more to come in this front, but exciting days.

Brian Nagel, Senior Equity Research Analyst, Oppenheimer: Hey. Last question. I think it’d probably mostly for Sarah just you know, you we mentioned you before the, you know, the the fortress balance sheet, the huge cash position. I thought that Figs enjoys me. I guess how should we be thinking of, you know, your capital deployment and and uses of excess capital here?

Sarah Autredd, CFO, FIGS: Yeah. So, we have no debts. We are a profitable business that generates good cash flow. And so that has resulted in a, you know, $251,000,000 cash balance. And how we think about capital allocation is and foremost is using that cash to invest in the business and drive growth.

And so we’ve talked about some of those investments that, you know, we’re we’re making this year to, yeah, really just invest in growth to scale this business. So that’s and foremost is investing into the business. We had talked about the distribution center. So that was a fairly large capital outlay that we had in 2024. We talked about how we we likely wouldn’t need to make the same level of investment.

But in terms of other capital projects, you know, we’ve talked about our real estate strategy where we are opening up community hubs. So we will be deploying to open community hubs. We will open three this year. We’re very much still in the test and learn phase at this point, but with those data points, we will decide, how quickly and how many stores we will open. So we will be able to fund that ourselves with with our current cash position.

You know? And then in terms of our share buyback program, we had authorized a, you know, buyback in August of last year. And to date, you know, we had invested $48,000,000 in buying back shares, which was great to see, and we’re continuing to evaluate, you know, the appropriate times for for buying back, shares in the future to return, you know, make give returns to investors, in that way as well. You know? And and right now, you know, with that cash position and that fortress balance sheet, that that gives us flexibility, and it also gives us flexibility in terms of, you know, how we manage through the upcoming tariff environment.

So we do feel well insulated and positioned for for what may come our way in the future, leading on on that financial position.

Brian Nagel, Senior Equity Research Analyst, Oppenheimer: Great. Well, we appreciate you participating. Trina, Sarah, Tom, thank you very much. Congrats on the ongoing success here. We look forward to watching the business continue to grow and scale and flourish.

Sarah Autredd, CFO, FIGS: Thanks for having us, Brian. Thanks, everyone.

Katrina Spear, Founder and CEO, FIGS: Thank you so much, Brian. Thanks, everyone.

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