Hi, all! Before you agree or disagree with the statement that Figs is our new Lululemon, I want you to take a look at this video. Or this video. Or many others on YouTube.
I know I know. They are expensive. Yes, they are. Just like Lululemon but as you can see from videos, people love them. Both girls and guys.
Just few people? No, I interviewed over 36 healthcare professionals for this before I considered getting into their IPO. Yes, as some of you who are following us, this is what I typical do. I interviewed doctors, dentists, nurses, hospital staff members, assistants and etc.
And here are quotes from them.
- “I only wear Figs. It’s so comfortable and I wouldn’t buy anything else”
- “They are the Lexus of scrubs. Why go with something else that’s uncomfortable and makes your skin itchy”
- “It’s expensive but it’s worth every penny“
Here are some from Twitter.
Moreover, the medical scrub market is going to reach over $140 billion by 2027. $FIGS expected annual revenue is only $410 million. Just imagine how much it’s going to be worth if it can capture 1% of the market share by 2027? Or 5% or even higher? Also, some people believe that this is the next apparel cult in the making. Or the next Starbucks but it’s written by fools at the Motley Fools so maybe we should ignore that.
Conclusion: You do your own DD but this looks like it can pop at any moment and take off.
- A huge upside to grow and capture a larger share of market
- Cult-like following and high customer loyalty
- Premium brand like Lululemon and pricing power that gives higher profit margin
- High short interest of over 32%
