How Does FIGS Company Work?

How is FIGS redefining healthcare apparel?

In 2024, FIGS reached over 2 million active customers and surpassed $500 million in annual net revenue, becoming the DTC leader in premium healthcare apparel. The brand pairs performance fabrics with fashion-forward design across scrubs, lab coats, footwear, and accessories.

FIGS operates a vertically integrated, DTC-first model with high gross margins, limited wholesale exposure, and data-driven merchandising that drives repeat purchase and lifetime value.

How does FIGS work? It designs, manufactures, markets, and sells directly to clinicians while expanding product lines and leveraging customer data to optimize inventory, pricing, and retention. See FIGS Porter's Five Forces Analysis

FIGS designs and sells premium medical apparel via a US-led direct-to-consumer model, combining proprietary technical fabrics, in-house design, and an asset-light global manufacturing network to optimize fit, comfort, and durability for clinicians.

Core product mix

Primary offerings include scrub tops, pants, sets, lab coats, underlayers, compression socks, fleeces, lifestyle apparel, footwear, and accessories that raise average order value.

Customer base

Customers are healthcare professionals across nursing, physicians, dentistry, veterinary, and allied health, skewing millennial and Gen Z with high repeat-purchase behavior.

Channels and reach

Operations center on a DTC e-commerce platform with a mobile app, limited pop-ups, and select B2B/institutional contracts; international expansion is growing via third-party logistics.

Design and technology

Design and product development are controlled in-house using proprietary fabrics offering anti-microbial protection, four-way stretch, and moisture-wicking properties.

FIGS runs a demand-planning engine using SKU-level sell-through, cohort analytics, and curated drop calendars; just-in-time purchasing and phased POs improve inventory turns and margin management.

Supply chain and fulfillment

Post-pandemic diversification accelerated multi-sourcing across Latin America and Asia, increased nearshoring for faster replenishment, and established a West Coast US distribution footprint plus international 3PLs.

• Asset-light manufacturing network across multiple countries to balance cost and lead time
• West Coast-centric US fulfillment for faster domestic delivery
• Third-party logistics partners for international expansion
• Multi-sourcing and nearshoring to mitigate disruption risk

Brand differentiation relies on clinician brand equity, consistent fit across sizes, limited-edition color drops, and a direct data loop that shortens design-to-shelf cycles; NPS in the high 60s–70s and repeat rates above 60% for mature cohorts support pricing power and loyalty.

Partnerships and marketing

Partnerships include healthcare institutions for group orders, creators and KOLs in medical communities, and limited-edition collaborations to boost engagement and conversions.

Revenue and metrics

Revenue drivers are DTC sales, expanding international orders, and B2B contracts; mature cohorts deliver repeat purchase economics that sustain gross margins and support premium pricing.

See a focused analysis of marketing and growth tactics in Marketing Strategy of FIGS, which complements this look at how FIGS works and the FIGS company business model explained.

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Revenue Streams and Monetization Strategies for the FIGS company center on a DTC-first model that drives gross margins and customer data advantages; in 2024 total net revenue was approximately $545–$560 million with gross margin near 69–71% following freight normalization and mix optimization.

DTC Product Sales (Core)

DTC scrub tops, pants and sets remain the largest revenue contributor, representing over 90% of revenue mix and preserving high margin structure and first-party customer data.

Adjacent Apparel & Accessories

Lab coats, outerwear, underlayers, socks and accessories act as high-margin add-ons; these attachments can lift average order value by 10–20% versus scrub-only baskets.

Footwear

Footwear is a growing category but still a single-digit percent of revenue; positioned strategically to increase share-of-wardrobe and customer retention.

International DTC

International direct-to-consumer accounted for low- to mid-teens percent of revenue in 2024, led by Canada, the UK and Australia; localization and faster shipping improved conversion.

B2B / Institutional Orders

B2B and group sales represent mid- to high-single-digit percent of revenue, focused on selective, brand-consistent partnerships with hospitals and clinics.

Monetization Tactics

Scarcity, tiered pricing and bundles drive full-price sell-through and higher AOV while personalized cross-sell and replenishment increase lifetime value.

Marketing and margin levers have evolved to support profitability and repeat business while preserving the FIGS business model advantages.

Key Revenue & Monetization Details

Concrete levers and outcomes tied to the FIGS company business model and how FIGS works in monetizing its medical lifestyle offering.

• DTC concentration: ~90%+ of revenue keeps margins and customer data direct to brand.
• 2024 revenue: ~$545–$560 million with gross margin ~69–71%.
• AOV improvements: accessory attachments and bundles increase AOV by 10–20%.
• EBITDA: marketing efficiency and CAC discipline supported EBITDA margins in the high teens to low 20s.

For further company mission context see Mission, Vision & Core Values of FIGS

FIGS PESTLE Analysis

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FIGS company evolved from a direct-to-consumer disruptor for medical apparel into a scaled apparel brand with strong clinician loyalty, robust unit economics, and expanding international reach; key milestones include product innovation, an IPO, and recovery to near‑prepandemic margins.

Early product and community

From 2013–2017 FIGS pioneered DTC scrubs using premium fabrics and modern fits while building a clinician community through social channels and ambassador programs.

Rapid scale and public listing

Between 2019–2021 revenue scaled past $250 million, and the 2021 IPO strengthened the balance sheet for inventory, international expansion, and technology investments.

Operational resilience

In 2022–2023 FIGS navigated post‑pandemic normalization and freight inflation by diversifying manufacturing, improving inventory turns, and restoring gross margins toward 70%.

Customer scale and new launches

By 2024 FIGS surpassed 2 million active customers, accelerated international shipping speeds, launched new fabrics and limited drops, and held a strong cash position with no long‑term debt.

The company addressed supply chain bottlenecks, seasonality shifts, and competitive discounting with multi‑sourcing, disciplined promotions, and SKU rationalization while continuing to test adjacent categories and creator collaborations.

Competitive edge and strategic playbook

FIGS business model leans on brand affinity in healthcare, high repeat purchase behavior, proprietary fits and fabrics, and a DTC data loop that informs rapid product iteration and a nimble drop model.

• High customer retention and repeat rates driven by clinician loyalty and targeted marketing
• Proprietary product engineering (fabrications and fits) that supports premium pricing and margins
• Diversified manufacturing and inventory improvements to mitigate freight and supply risks
• Ongoing experimentation with footwear, outerwear, and creator partnerships to sustain cultural relevance

For historical context and milestones, see Brief History of FIGS.

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FIGS leads the premium DTC niche in the $12–14 billion global medical apparel market, with US online scrub leadership and growing international share; strong repeat cohorts and community-driven acquisition lower CAC while premium design and fit differentiate versus low‑price rivals.

Industry Position

FIGS company is a market leader in premium FIGS scrubs and medical lifestyle apparel, operating a FIGS direct-to-consumer model that emphasizes brand, fit, and repeat purchase economics.

Competitive Set

Competitors include traditional uniform distributors, value brands and emerging DTC entrants; FIGS competes on product design, proprietary fabrics, and community engagement rather than lowest price.

Key Risks

Principal risks: clinician consumer softness, promotional activity by competitors, fabric input and freight cost volatility, and category concentration in scrubs.

Execution Risks

International scaling, footwear expansion, and managing copycat/IP challenges create execution risk; institutional procurement dynamics can lengthen sales cycles despite modest regulatory exposure.

Management aims to drive mid‑high single‑digit revenue CAGR by international penetration, broader assortments and selective B2B, while protecting margin via technology merchandising and disciplined inventory/marketing.

Outlook & Financial Targets

Management targets a sustainable gross margin near 70% and margin expansion through mix and operating leverage to grow EBITDA while staying capital-light and cash-generative.

• Repeat cohorts drive the majority of revenue; repeat rates and LTV support CAC efficiency
• International sites and localized logistics to increase addressable market
• Selective B2B to add durable demand without diluting brand
• Technology-driven merchandising to protect margins amid input cost volatility

See analysis of the brand’s buyer base and positioning in this piece on the Target Market of FIGS

FIGS Porter's Five Forces Analysis

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