Shares of Figs, the medical scrubs company, saw a significant boost in late trading after the company revised its sales growth forecast for the year. The stock experienced a 9.3% surge, reaching $6.14 in after-hours trading on Thursday, following a 6.2% increase during the regular trading session. Despite a 17% decline earlier this year, Figs now expects their sales to rise by 8.5% for the year, surpassing their previous forecast of 5.5% to 7.5%.
Positive Financial Performance
Figs reported a profit of $6.1 million, or 3 cents per share, for the quarter-ending September 30th, compared to $4 million, or 2 cents per share, in the same period last year. This exceeded analysts’ expectations of 2 cents per share. The company’s sales also increased by 10.7%, reaching $142.4 million, primarily driven by new and existing customer orders. Analysts had anticipated $131.4 million in sales.
Strong Leadership and Board Addition
Trina Spear, the Chief Executive of Figs, expressed satisfaction with the company’s revenue and adjusted earnings before interest, tax, depreciation, and amortization, as they surpassed internal expectations. Furthermore, Figs recently welcomed Mario Marte, the former Chief Financial Officer of Chewy, to their board of directors. Effective from November 3rd, Marte’s wealth of experience is expected to contribute significantly to the company’s growth trajectory.
In conclusion, Figs’ revised sales growth outlook and positive financial performance have sparked investor enthusiasm, resulting in a notable boost in their stock value. With strong leadership and an influential addition to their board, Figs is well-positioned for continued success in the medical scrubs industry.