Is this Yeah, it's working. Great. We're good to go. Good afternoon or good morning. I guess it's still morning, maybe moving into afternoon. This is my favorite part of having companies come to the conference, doing the fireside chat. I'm Adrienne Yih. I am the Barclays Specialty Retail Apparel and Footwear Analyst, and it is my extreme pleasure to welcome Trina Spear, Co-Founder and CEO of FIGS, and Sarah Oughtred, CFO. I think it's always really important to understand the management backgrounds and bios. I'll start with Trina. Trina co-founded FIGS in 2013 with Heather Hasson, and she led the company from an entrepreneurial disruptor in healthcare apparel through its 2021 IPO and today into one of the most recognized and trusted brands serving healthcare professionals globally.
Under her leadership, FIGS has built a unique combination of product innovation, community engagement, and brand affinity that has helped redefine an entire category. Sarah joined FIGS in 2024 as CFO after a 17-year career at Lululemon and has been instrumental in scaling the company's financial discipline and profitability while helping support growth initiatives across customer acquisition, international expansion, enterprise partnerships, and category diversification. I've always found FIGS to be one of the more fascinating stories in retail because on the surface, investors view it as a scrubs company. But when you dig deeper, this is really a discussion about building a category-defining brand, creating a highly engaged professional community, expanding wallet share with a loyal customer base, and building a platform serving healthcare professionals around the world. With that introduction, before we get into FIGS, I always like to set the macro backdrop.
Let's talk about, Trina, how would you characterize the health of the U.S. consumer today relative to your guidance at the beginning of the year, six months ago? What's getting better, what's getting worse, and what do you think investors may be misunderstanding about the consumer, specifically your consumer?
Well, thank you so much, Adrienne. What a pleasure and what an intro. That was amazing. It's so exciting to be here, and thank you for taking the time, and thank you for all being here today. Yeah. I think we're in an interesting space, right? We don't serve the average consumer. Healthcare professionals are the most incredible people on the planet. They're saving lives, they're helping patients, and they're curing diseases. I think one of the biggest things with our consumer is that they all have jobs. All of them are employed as doctors and nurses in healthcare institutions around the planet. Healthcare jobs are the fastest-growing job segment of any other job segment in the world. That's a huge tailwind as we think about the space in which we operate and who we're serving.
If you look over the past year, 550,000 of the 600,000 job gains were healthcare jobs and social assistance. Thinking about we are in this massive industry, 140 million healthcare professionals around the world. They are growing faster than any other job segments. Wages are stable, right? This is an incredibly stable profession. Healthcare professionals are the backbone of any functioning society. When we think about who we are serving, the industry that we are in, the setting that they operate in, it is truly unique. The other piece of it is that it is non-discretionary, right? Healthcare professionals need their uniform to go to work and do their job. It is a mandated industry. What we do at FIGS is we are providing a product to healthcare professionals so that they can look good and feel good and perform at their best.
That, I think, is truly unique. To your question about the guide earlier this year versus today, I think we have just seen a continued acceleration, right? Starting actually Q4 of last year where + 25% growth the last three quarters. Incredibly proud of that and doing that in a profitable fashion. So much more to do and much more in terms of how we are going to show up and serve this community. It is exciting to be in the position that we are in today, and to continue to execute on all of what is in front of us.
Perfect. Great. Sarah, I am going to turn to you about the model itself. FIGS is primarily e-commerce, and so you get a lot of data, right? Along with to help you understand the consumer backdrop. Traffic is a big one. Can you talk to us about those three quarters that you have actually been accelerating top line growth? What have you been seeing in terms of traffic and more importantly, conversion at full price?
Sure. We have been growing the business, we have been accelerating that growth rate, and a big piece of that is from higher traffic. We have seen great efforts from all over our marketing channels that are driving that traffic, and still maintaining strong conversion. That strong conversion is really a function of the product offering and that continuing to improve from all the pieces that we have been doing to continue to innovate, continue to invest in the layering system. Seeing really strong results that is driving our orders and really contributing to that top-line growth.
Great. Let me just to put that into perspective. We just came out of a second quarter earnings season. What you're describing here, 20% top-line growth, profitability, strong gross margins, conversion, and traffic up is actually rare, very rare in this current environment. I think that's why we get so many questions about: Is the consumer healthy? Your consumer is healthy. I think that speaks volumes to what I'm going to talk about next. The moat, right? What makes your business different? Every great company has a moat. Trina, you and I talked about this at the IPO at great length. I think you've proven it. When you think about FIGS today, what is in essence the true moat?
Yeah, I think there are a number of moats. I know you said one, but I'm going to say two.
Please.
Okay. I think product is our moat, right? It's our North Star. We don't think about product as in just making something, right? It's really about creating a product that works for a community in an environment that they're in. We start at the yarn level. So, we became famous for our FIONx fabrication. This is a fabric that is antimicrobial and wrinkle-resistant and stain repellent and has four-way stretch and really works in the environments that healthcare professionals are in. Having enough storage and pocketing for your keys and your stethoscope and your alcohol swabs and all the things you're carrying around as a healthcare professional is super important. Really kind of combining these two worlds around technical fabric and comfort, and really bringing those together in for a community that didn't have it.
Product and continuing to innovate, not just in scrubwear, but across the layering system, Sarah mentioned it. Underscrubs, outerwear, Compression Socks. We have a footwear collab with New Balance. All of that is really important so that we can serve all the different needs of healthcare professionals, both on shift and off shift, head to toe. I would say the moat that is harder to replicate, but once again, no one's been able to rip off our fabric. But the moat that's harder to replicate is how we've built a community. What we've done for this industry is we've branded an unbranded industry. We de-commoditized what many believe was a commodity product. But the thing that I think we're most proud of, and something that we really have honed in on, is around how we've built a community around a profession.
Okay, this is a diehard, fanatical community that loves FIGS, and we are obsessed with them and love them as much as they love us. This is a community of people that have dedicated their lives to serving everybody else. That job is hard. When we think about how we show up for them in our campaigns, in our showcasing the best of them back to them, whether that is a billboard in Times Square, a film on Instagram and TikTok, or an activation we are doing next to their hospital, we need to show up really, truly understanding them, and getting what they do and how they do it, and having their back. That is something that is very hard to replicate. On the piece around that, we have a whole advocacy group fighting for healthcare professionals in D.C.
We are giving back scrubs, giving scrubs around the world to healthcare professionals in need, so that is a big part of what we do. I just think there are so many things on the community front that we do with our now 600 global ambassadors that are exclusive to our brand, that really helps them. They are driving the brand as much as we are working with them to continue to build everything that we are doing. So it is super exciting.
No, I really like the point that you made because, just outside, we were talking about new competitors entering your space. I think what they lack is they can make the product, they can knock off your designs, but what they cannot do is build this longstanding community. So I very much appreciate that. I guess it goes into my next question. Some companies sell products and others sell symbols of identity. Healthcare professionals obviously have an emotional connection to FIGS that feels very uncommon. Other than the community, how else do you maintain that connection with them?
Yeah. I think that is what we have really done, to your point. We have built an authentic brand for the past 14, 15 years. These are real relationships, one-on-one relationships, and we have been able to scale that. But that feeling that this company understands me and knows me is super important. So we do it with our films. We do it with our really deep connections with our ambassador community who are the most influential voices in medicine. Then we do it with our advocacy. One of the things that we put forth is our Healthcare is Human Act, which we are fighting for a $6,000 tax credit. I mean, you get a tax credit for having an EV car, you get a tax credit for having certain windows in your house, you get a tax credit for having children. But what about saving lives?
What about all the work that healthcare professionals do? $6,000 a year is what we're fighting for. We've also partnered with the Dr. Lorna Breen Heroes' Foundation on mental health support. Coming out of COVID was incredibly impactful for our community, in terms of PTSD and everything that they faced. There was a question on the form when you would join a hospital that said, "Have you ever had mental health support?" That could be used against you if you check that box. We got, I think, about half the states in the U.S., we got that question off the form. If you're an elite athlete, you have a coach. Why is it as a healthcare professional, you can't have a therapist? That seems crazy.
Okay, a whole host of other things around pay, safety, training, support, in your workplace. Our community knows that we're doing this work, and it's super rare. Some of the things that we're doing, no one even thinks about. They don't understand because they're not DTC. They don't understand the lives and the experience of being a healthcare professional and what's needed to do that job. We do because of those relationships, and then we're able to take action, and build out teams to go after this and really make that experience better, which is our goal.
That's great. Which then brings me to the brand awareness and the return on all these good things. We're sitting here today, we're broadcasting out to the investment community, and we all know these things. But it's hard to get that message out to 3.1 million-
Yeah.
active customers. Sarah, can you talk about sort of where you are in that customer acquisition journey? A lot is always talked about ROAS, return on ad spend, how much more effective that is as you build this sort of installed base, so to speak. What have you learned about the lifetime value of your most engaged customers?
Sure. Our active customer base is 3.1 million. We grew at 13% in the quarter. We have been accelerating the growth rate of that active customer base, and that is really being driven by not only acquiring new customers, but seeing really favorable returning customer metrics. There are over 140 million healthcare professionals worldwide, and so if you compare our 3.1 million to that, there is a massive runway for us to continue to go after improving our active customer base. We look at the longer-term growth drivers as one component really being that active customer base and continuing to increase it, as well as continuing to grow revenue per customer. Your question around marketing has been successful for us to continue to grow that active customer base.
The journey with marketing really has evolved from a pure bottom of funnel to really building out, adding on upper funnel that is helping to improve our awareness, helping to share the brand message, helping to share all about product education. We have also then shifted to adding in the middle layer. We have really evolved from bottom of funnel to full funnel marketing, and we have done that with a very similar cost structure over time. We have seen efficiencies gained through bottom of funnel, and we have reinvested that into the business to really build out that full funnel. We have got this really great marketing flywheel that is really performing for us. We see continued opportunity with it, and we will continue to use that to go after building out that active customer base.
Yeah, it does seem like the step up in advertising, though some people were a little bit upset that it pressured the SG&A, but it really feels like we are now seeing the aftermath of that with the acceleration in the customer acquisition. With that in mind, what gives you the confidence that recent acceleration in this customer growth is sustainable and not simply some of the kind of impact of some higher brand advertising in the earlier part of the year?
Sure. I think how we look at the overall business in terms of what has been driving the growth, not only within the active customer base, but really throughout, is that it is broad based. It is not just one thing that we have turned on. We have got a really powerful ecosystem that is working for us and driving the results, and we are seeing it across our geographies, our product, our different channels. It is the whole system that is working for us and driving it, and that tells us that there is sustainability behind it. We have made investments into the business that have improved our results, and we are only at the beginning here. We have lots of other initiatives that are still to come, and so we know that there is additional levers we can continue to pull, additional investments that we can continue to make to continue that growth into the future.
Can you share any brand awareness metrics with us? Kind of a year ago or before you started the big push to the top of the funnel.
Sure. Overall, the tracking that we have around brand awareness suggests that it is quite low. We have seen continued improvement in all of those metrics. So unaided awareness, preference, usage, and year to date we have seen notable improvements. That has been really great to show that the efforts that we are doing are working. We do think we have a big runway. So there is a lot of people that are not aware of FIGS, and that is still within the U.S., so there is still awareness and business that we can continue to drive within the U.S. And then much more so globally. We have been building our international business. It is about 20% of the business today. As we continue to build that awareness and have people learn about the brand, as soon as they try the product on, there is a lot of stickiness.
Once they have tried that product, they are with us. We can continue to invest in that upper funnel to drive that awareness, and really build the brand for the future.
Great. I am going to move over to the competitive landscape. When you started this journey in 2021, or at least since I have known you from the IPO, you were kind of the transformation, right? You were moving from kind of a primarily wholesale driven, account based system to the DTC model. Can you talk about today, five and a half years later, how some of those competitors that we thought would be difficult for you to move aside, how the landscape has sort of shifted more in your favor, and what are the big changes that you are seeing today amongst the competition?
Sure. I think there's really two parts of the competitive landscape. It's kind of the old world, as you mentioned, the dinosaurs that kind of were essentially licenses of other companies like Cherokee and Dickies and Grey's Anatomy scrubs, which is a license from ABC Studios, the TV show.
Which is crazy. All of those companies would then sell to scrub stores and strip malls where there'd be a rack of black and a rack of navy, and next to bed pans and knee braces, and that was the industry, right? Economically, it didn't make any sense because they were paying a 10%-12% royalty fee to the license holder. They're giving 60% of the price to the wholesaler. They didn't know the names of their customer because somebody else was selling to the end user, the healthcare professional. So that was the industry. We called it the anti-moat. Those companies are still stuck in the strip mall, right? A lot of those companies, the largest company, has since gone bankrupt and is restructured, and I think even now is going through a number of challenges.
The new world, we didn't do a lot of press because we didn't feel like that would do anything for us. So, I would say the copycats are very behind in terms of, they saw our success in the IPO, they tried to copy us. A lot of them launched two years later. They kind of were like, "Oh, this is harder than I thought," and then got bored and then went away. Some of them are still around. But I would say if you were to take the full copycat space and combine all their revenue, it's like a fifth of our size, all of it. Scale matters, right? Because our marketing budget's bigger than their revenue, and that's hard to compete with.
Our relationships with our manufacturers are really deep, so we're able to innovate and do things that others can't do. They can't access our ambassadors that are really important to what we do, and they just don't think like we do, right? We are not complacent. We're paranoid. We got to be better, faster, smarter than everybody else, and all of that. But at the end of the day, I do think the moat has never been wider between us and everybody else. We've never been better positioned from a product and a marketing standpoint to continue to execute on all of our initiatives and continue to deliver on our goals.
Great. Let me just remind everybody where you are in that journey. This year we are looking at about $760 million top line. We always say the path to that first billion is really, really tough. At that billion, you get enough eyeballs on you, and you make enough of an impression that that one to the two starts to really happen. So you are right on that kind of big inflection point. As we talk about the revenue growth formula, we talked about customers, new acquisition, but let us talk about wallet expansion, right? Share of wallet. How should we think about the opportunity to grow spending from existing customers, which would complement the new customers?
Sure. I think that the new customer opportunity is just as big. The repeat frequency opportunity is just as big as the new customer opportunity, right? We talked about 140 million healthcare professionals. We have 3.1 million active customers. There is a huge opportunity in terms of how often healthcare professionals are coming back to replenish their uniform with us. Healthcare professionals, they come to us, they might buy the Katarina top and the Isabelle pant. Those are two of our best-selling products. Check them out. Then they are going to come back because they love it so much. We are not paying for them to come back, right? That is the beauty of the product being so great that people want to come back, and they need their uniform to go to work and do their job.
On average, healthcare professionals are buying about four to six sets of scrubs a year. They have 8 - 12 sets of scrubs in their closets. They are replacing their uniform wardrobe every two years. This repeat dynamic is incredibly powerful. It is the difference between FIGS and almost every other consumer company on the planet, is that the acquisition is mainly from word of mouth because everyone is a walking billboard acquiring that next customer for us. That is why our marketing is so efficient. On the repeat side, you are coming back because the product is so great, right? There is no reason why you would need to see an ad or whatever to buy it again, right? So that replenishment dynamic is super strong. Revenue per customer, record $229.
On average, healthcare professionals spend $550 a year on their healthcare uniform, so a lot of runway to continue to penetrate the full share of wardrobe, and we are going to continue to do that. It is not just about the scrubs, it is also about the non-scrubs. Non-scrubwear grew 40% in the quarter. That is your Underscrubs, your outerwear, your Compression Socks. We have an amazing accessories business that is blowing up right now. We just made an acquisition of V Coterie, which is a pin and jewelry and charm business, which is awesome. All of the ways that not only all the products you need in your job, but also how are you personalizing. It is super fun, it is super cute, and there are all these ways that we can make it fun and cute for our healthcare professionals.
Yeah. I remember, again, so much of this reminds me of the IPO, that you had said, we all get up in the morning, and we get to pick an outfit.
Right.
We get to pick what we want to, the expression of who we are, and they don't. So with FIGS, you're offering kind of this version through V Coterie and all the personalization to actually have an expression of who they are from 8:00 A.M. to 8:00 P .M. All day long.
Yeah. Love that.
Which brings me to my third pillar of growth, which is total addressable market. So you touched a little bit on sort of the new TAM opportunities. Let's talk about V Coterie a little bit, and then what product innovation sort of in the pipeline that you can share with us excite you the most today?
Sure. People talk about the TAM, and a lot of companies talk about category killers. We talk about category creators. How are we creating categories, creating products for this industry that don't exist? We literally did that with the scrub jogger. It didn't exist. No one knew what a ScrubJumpsuit was. We invented it. Now it's a lot of sales. That's how we think about our industry and leading the industry, and leading with product innovation. I think there's so much that we're building out in terms of take Underscrubs or take outerwear in terms of weight, in terms of the environment that you're in. You need different weights for whether it's colder, whether you're working outside on shift, whether you're working in a freezing hospital. You need different products that suit that.
But to your point about V Coterie, this is a brand new space for us. We have been working with Lynna and V Coterie for eight years. We had been essentially partnering with her and collabing with her to the point where we saw how incredible this product was and how much love there was for the pins and for the jewelry, and how people were integrating that into their uniform, that we made the acquisition. Super excited about what this is to become and super excited about accessories generally, and what that will be. I think when we think about our customer journey, when we think about this love that the community has for FIGS and how much more we can offer, what other ways can we serve them, and what other ways will be meaningful for them?
I'm excited about all of it. I'm excited about We are just getting started in all of these areas. But even within scrubwear, we're reinventing. We just launched our FIBREx fabrication. It's game-changing. The amount of durability and storage and what you can do with that product is unbelievable with that fabric. So innovating across the board.
Great. Then one more extension of the product, so beyond scrubs. Talk about the lifestyle component of it. You talk about on shift and then off shift.
Yeah.
How much are you seeing FIGS as a brand extend into their weekend life or their off-shift life?
I meant to say about TAM too, and then lifestyle, it is all tied together, right? Lazy companies sell into TAM, innovative companies create TAM. We create TAM every day at FIGS. That is the goal, right? It is completely changing the game. Even in the TAM numbers, the TAM numbers out there in the industry, they do not include Underscrubs and outerwear. Those are our two biggest non-scrubwear categories. All of this extends beyond the shift and extends beyond what people thought of as healthcare apparel. In terms of lifestyle, healthcare professionals are, it is like "Us Weekly," they are just like us, like celebrities. They are just like us. They go get a coffee. They are in a surgery. They are watching Bravo. They have full lives. They are drinking a glass of wine with their friends at night, and they need a brand for them.
We are that brand, right? Having off-shift products, our loungewear, right? It is really around recovery. You just did a 12-hour shift, right? How are you recovering for that next shift, and what are the products that we can align with that so that you can seamlessly be ready for your next day or the night shift? Many of our nurses, many of our doctors are working nights too.
It is about all the layering pieces on shift, off shift, and then head to toe from your scrub cap all the way to your footwear. What is under unders, what is under scrubs, what is outerwear, and how can we really align that for your different activities on shift, right? We think about low impact activities and medium impact and high impact, and how do we build layering systems for each of these types of activities for real-world settings. It is all about solving problems, right? We are listening to our customers every single day. We are getting feedback. They are very loud on what they like and what they do not, which is awesome. They tell us exactly what they want, and then we are giving them what they did not even know they want, right? What is that version of a faster horse? Well, no one thought the car would exist.
For us, what is the car? We think about that every day.
Great. One of the sort of misunderstandings or misperceptions is that men aren't as easy to sell to, right? They don't change over their wardrobe as much, and they don't perhaps care as much about fit, form, and function. Dispel that notion.
Yeah. Men care. Well, it's funny because we have a lot of women in our company. We joke about some companies, some athletic brands, they had to be like, "Figure out the women." It's like the pink it and shrink it that existed. For us, I think men is about 15%-ish of our sales, and the industry is 25%. Men is a massive opportunity. I would say we're really focused on ensuring that our products and our assortment and the cadence in which we launch and the marketing aligns perfectly with male healthcare professionals. It's super important. I think we've done a great job, but there's much more to do and a huge opportunity because they do care, and they do buy differently, right?
They'll buy the Leon top and the Cairo pant, which is two of our best-selling men's products, and they'll want it in navy or black. Then they'll buy like four sets at a time. Then they'll come back a little less often, versus women, they want every color drop, and they'll buy a set or two, right? You just understanding the nuances and the differences and then really serving them in the best way we can. But massive opportunity to continue to get more of our men on board.
Great. Let's get to the numbers for Sarah. Let's talk about the structural margin drivers that drive the top line and then pricing power. Again, I am going to reiterate numbers that you already know. For this year, you had guided to growing over 20%. We are looking at about $760 million this year, and adjusted EBITDA margin of 15%. Those are all growing double digits. That leaves the top line over two years. Talk to us about the sustainability, because we talked a lot about top line, so now let's kind of drill down into the P&L. The sustainability of that 68.5% gross margin. It was always very attractive gross margins from the get-go. Is this kind of the new norm, or are there opportunities for upside going forward on that.
Sure. Our gross margin is very strong. We have historically run in that 67%-68% profile. This year, with the tariff refunds, that does create some abnormalities, so we are guiding to 69.5% for this year, just given that dynamic. As we go forward, I think that we have opportunity to continue to hold that rate. We have been working on making improvements in terms of how we are buying, how we are working with our factories that can continue to help that. We do expect a headwind in terms of tariffs as we head into 2027, just given that there would be the impact of the IEEPA tariff refunds. Something else to keep in mind as it relates to our gross margin, our cost of goods sold is just all product cost. It is all variable.
Other companies often have overhead or other fixed costs that can leverage over time. That is not a dynamic for us. As we think about the overall P&L, we are not planning on gross margin being a major contributor to margin expansion, but instead, we see a really great opportunity to continue to improve our operating cost structure, both in terms of efficiency as well as leverage. Would expect that profit expansion over time will really be driven by our operating expenses, while still being able to mostly maintain our gross margin profile.
Great. Couple things in the short term, the near term, and then the longer term. Oil has been up for a lot longer than we would have hoped. It looks like it is going in the wrong direction, frankly. When you think about the costing horizon, I am not asking for guidance, but just how should investors think about as we roll into 2027 on some of the pressures on that costing, can you offset that through scale buying, et cetera. Then on the longer term for the operating margin, how much additional operating leverage exists in that model.
Sure. As we think about our product costing, we had already negotiated rates for 2026, so haven't seen notable impact there. We think that it can impact us in the future, but scaled buying can also be an offset as well. We are going to continue to navigate around that. I would say that, as we think about the other impact really around oil is, we've seen our carriers have applied various different surcharges that began really in Q2. Our guide has continued to improve, but we have been picking up more and more costs related to both inbound and outbound shipping. We first increased our carrying costs really related to inbound. Now we are also carrying additional costs related to some of the air freight as we continue to navigate around some of the supply chain dynamics.
We are carrying quite a bit of extra cost for this. If over time those costs reverse, that will be a benefit to the overall P&L. For now, we continue to assume those rates will stay. They've been in effect for quite a while. We don't see those coming down, but if and when they do, there could be benefit there to the P&L.
Great. Okay, let's talk about international. There's so many things to talk about.
I know.
So many good things. It continues to be one of the most exciting parts of the story. It remains substantially ahead of the rest of the overall business. Why is the FIGS brand resonating globally with, again, fairly low brand awareness?
Yeah, healthcare professionals are everywhere, right? There are 140 million of them around the world. I think that FIGS is timeless, and it's ubiquitous, and whether you're a healthcare professional living in Mumbai or Paris or Munich or Kentucky, you need a product that's going to help you look good and feel good and perform at your best. That is the human condition. I think when you think about FIGS, it really does translate globally. There's a lot that we're doing. We're in 85 countries. We've built out our strategies around go deep and go broad. We're going deep in Canada, Mexico, U.K., Australia, really localizing, having boots on the ground, building out our ambassador program, doing more top-of-funnel marketing, really understanding the nuances of that market and really honing in on what makes sense. That's working. You're seeing that.
A lot of the 67% growth for international for the quarter is in the core large markets. That's where the growth is coming from. The other markets is where we're going broad. We're turning on digital marketing. We're getting our ambassador program going, and that's been helpful. We'll see that'll be a future growth lever in the future. Finally, Asia. Korea, Japan, and China. These are our markets that we're investing even more to get on the right social platforms, to build out the community, on the ground. There is a little bit more nuance, but overall, our assortment, our product, our brand, is really resonating on a global level, and the playbook that we've built in the U.S. is working at a global scale.
Great. Last part of the Community Hubs. So many more opportunities, but let's talk about the Community Hubs very quickly. They're more than stores, right? They're places of community gathering. Can you talk about are they primarily acquisition vehicles, awareness drivers, community centers, profitability drivers, or all?
They are all.
Sure, yeah. They're all of those things. Really excited with what we're seeing from Community Hubs. We have five today. We're going to be opening four more. What we see is they are a great customer acquisition vehicle for us, so that's been really great. They're an amazing awareness and billboard for our brands. They're helping to expand some of our different categories in terms of new fabrications, men's penetrates higher, and it's the opportunity for the customer to really try on, find the styles that work for them, feel the fabrics, understand some of the newness that we're offering. Financially, they've been performing beyond our expectations really, really well. So a great acceptance for these new stores, and we see the opportunity to add on more stores into the future. They're really helping to grow the business within each of the cities that they're in.
We see halo impact already happening in some of our newer locations, so really excited about the results. We think that this will be a profitable channel for us, and also accretive to the overall business. Everything is really working very well. It's very strong. Super excited about the trends that we're seeing, and really excited to bring the FIGS brand to our healthcare communities right now across the U.S. We're underway and, yeah, more to come in the future.
Okay, so we have a minute and a half left, so we're timing this perfectly. Trina, with one final question. We're sitting here with investors after this fireside, and you wanted them to understand one thing differently about FIGS than they did before they walked into this room. What would it be?
I think that we're building an iconic brand over the next 100 years. We're going to be continuing to balance growth and profitability in a really sustainable way. What you've seen over the past year around sustained growth and around community building and around product innovation, we're going to continue to do this the hard way, the right way, for the long run. Really understanding that our customer is different. Healthcare professionals are different, and they need to be served in a very unique way, and we are the brand and the only brand for them. This is what we've built authentic connections over the last 15 years, and we're going to continue to do that over the next 100. Super happy to be here with you. Thank you so much.
Yeah, thank you. I always just whenever you're covering, I've been covering these stocks, consumer stocks for, gosh, over 20 some odd years, and what I always think that investors may not fully appreciate is the emotional connection.
Yeah.
At the end of the day, when you put on that brand, that piece of apparel, it should make you feel like a million bucks.
Yeah.
I think you do that with FIGS. Thank you so much, Trina and Sarah.
Yeah. Thank you.
Thanks for joining us. Thanks everybody for joining.