FIGS, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>FIGS, Inc. has filed its 2023 annual report (10-K) detailing financial performance and corporate information for the fiscal year ending December 31, 2023.</b>

AI Summary

FIGS, Inc. (FIGS) filed a Annual Report (10-K) with the SEC on February 28, 2024. FIGS, Inc. filed its 2023 Form 10-K on February 28, 2024, reporting on the fiscal year ending December 31, 2023. The company's principal business address is 2834 Colorado Avenue, Suite 100, Santa Monica, CA 90404. FIGS, Inc. is incorporated in Delaware and operates within the Apparel & Other Finished Products sector. The filing covers the fiscal years 2020 through 2023, detailing financial activities and stock information. Key dates include the filing date of February 28, 2024, and the fiscal year end of December 31, 2023.

Why It Matters

For investors and stakeholders tracking FIGS, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of FIGS, Inc.'s financial health, operational performance, and strategic direction for the fiscal year 2023, which is crucial for investors to assess the company's current standing and future prospects. The detailed financial data and risk factors disclosed in this report are essential for stakeholders to understand the company's market position, potential challenges, and investment risks.

Risk Assessment

Risk Level: medium — FIGS, Inc. shows moderate risk based on this filing. The company's financial performance and future outlook are subject to market dynamics and operational execution, as indicated by the comprehensive nature of the 10-K filing which includes various risk factors.

Analyst Insight

Review the detailed financial statements and risk factor disclosures within the 10-K to understand FIGS, Inc.'s performance and potential challenges in the apparel market.

Key Numbers

• 20231231 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 20240228 — Filing Date (AS OF DATE)
• 2300 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)
• 001-40448 — SEC File Number (SEC FILE NUMBER)

Key Players & Entities

• FIGS, Inc. (company) — CONFORMED NAME
• 2834 COLORADO AVENUE (address) — BUSINESS ADDRESS STREET 1
• SUITE 100 (address) — BUSINESS ADDRESS STREET 2
• SANTA MONICA (location) — BUSINESS ADDRESS CITY
• CA (location) — BUSINESS ADDRESS STATE
• 90404 (postal_code) — BUSINESS ADDRESS ZIP
• DE (location) — STATE OF INCORPORATION
• 20231231 (date) — CONFORMED PERIOD OF REPORT

FAQ

Industry Context

FIGS, Inc. operates in the apparel industry, specifically focusing on healthcare apparel.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to disclose material information.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and other key performance indicators.
2. Review the risk factors section to understand potential challenges and threats to the business.
3. Examine any disclosures related to executive compensation and corporate governance.

Key Dates

• 2024-02-28: Filing Date — Official filing of the 2023 annual report.
• 2023-12-31: Fiscal Year End — End date for the reporting period.

Year-Over-Year Comparison

This is the initial 10-K filing for the period ending December 31, 2023, as indicated by the available data which spans multiple fiscal years but focuses on the most recent.

Key Financial Figures

• $0.0001 — which registered Class A common stock, $0.0001 par value per share FIGS New York Stock
• $0 — trant's Class A common stock, par value $0.0001, outstanding and 8,283,641 shares
• $500,000 m — ry day. For example, in 2021, we made a $500,000 multi-year commitment to fund the develop
• $12.0 billion — hcare apparel industry was an estimated $12.0 billion in the United States alone and $79.0 bi
• $79.0 billion — billion in the United States alone and $79.0 billion globally, according to an April 2021 Fr

Filing Documents

• figs-20231231.htm (10-K) — 1646KB
• figs-20231231xexx231.htm (EX-23.1) — 3KB
• figs-20231231xexx311.htm (EX-31.1) — 9KB
• figs-20231231xexx312.htm (EX-31.2) — 9KB
• figs-20231231xexx321.htm (EX-32.1) — 4KB
• figs-20231231xexx322.htm (EX-32.2) — 4KB
• figs-20231231xexx971.htm (EX-97.1) — 27KB
• figs-20231231_g1.jpg (GRAPHIC) — 51KB
• figs-20231231_g2.jpg (GRAPHIC) — 199KB
• 0001628280-24-007659.txt (&nbsp;) — 7868KB
• figs-20231231.xsd (EX-101.SCH) — 43KB
• figs-20231231_cal.xml (EX-101.CAL) — 94KB
• figs-20231231_def.xml (EX-101.DEF) — 205KB
• figs-20231231_lab.xml (EX-101.LAB) — 713KB
• figs-20231231_pre.xml (EX-101.PRE) — 445KB
• figs-20231231_htm.xml (XML) — 794KB

Business

Business 6 Item 1A.

Risk Factors

Risk Factors 16 Item 1B. Unresolved Staff Comments 51 Item 1C. Cybersecurity 51 Item 2.

Properties

Properties 53 Item 3.

Legal Proceedings

Legal Proceedings 53 Item 4. Mine Safety Disclosures 54 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 55 Item 6. [Reserved] 56 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 57 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 69 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 71 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 98 Item 9A.

Controls and Procedures

Controls and Procedures 98 Item 9B. Other Information 98 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 98 PART III Item 10. Directors, Executive Officers and Corporate Governance 99 Item 11.

Executive Compensation

Executive Compensation 102 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 102 Item 13. Certain Relationships and Related Transactions, and Director Independence 102 Item 14. Principal Accountant Fees and Services 103 PART IV Item 15. Exhibits and Financial Statement Schedules 104 Item 16. Form 10-K Summary 106 2 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1955, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts contained in this Annual Report on Form 10-K may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expect," "plan," "anticipate," "could," "intend," "target," "project," "contemplate," "believe," "estimate," "forecast," "predict," "potential," "strategy," "strive" or "continue" or the negative of these terms or other similar expressions. Forward-looking statements contained in this Annual Report on Form 10-K include, without limitation, statements regarding our future results of operations and financial position; our industry; business and macroeconomic trends; the impact of COVID-19 and macroeconomic pressures; our use of ocean and air freight; the fact that we may continue to contend with global supply chain challenges; demand for our products; our expectations regarding the opening and success of retail stores; our plans for evolving our sourcing capabilities and strategically refining our manufacturing base; our fulfillment enhancement project and the impa

Business

Item 1. Business. Overview Our mission is to celebrate, empower and serve those who serve others. We are a founder-led, direct-to-consumer healthcare apparel and lifestyle brand that seeks to celebrate, empower and serve current and future generations of healthcare professionals. We are committed to helping this growing, global community of professionals, whom we refer to as Awesome Humans, look, feel and perform at their best—24/7, 365 days a year. We create technically advanced apparel and products that feature an unmatched combination of comfort, durability, function and style, all at an affordable price. In doing so, we have redefined what scrubs are—giving rise to our tag-line: why wear scrubs, when you can #wearFIGS? We have revolutionized the large and fragmented healthcare apparel market. We branded a previously unbranded industry and de-commoditized a previously commoditized product—elevating scrubs and creating premium products for healthcare professionals. Most importantly, we built a community and lifestyle around a profession. As a result, we have become the industry's category-defining healthcare apparel and lifestyle brand. We sell products purposefully designed to serve the particular needs of healthcare professionals primarily through our direct-to-consumer ("DTC") digital platform, consisting of our website, mobile app and B2B business ("TEAMS"). We also recently launched our first physical retail store, which we call a Community Hub, and which represents a first-of-its-kind experience for healthcare professionals. Our offerings include scrubwear and non-scrubwear, such as outerwear, underscrubs, footwear, compression socks, lab coats, loungewear and other apparel. We primarily design all of our products in-house, leverage third-party suppliers and manufacturers to produce our product components and finished products, and generally utilize shallow initial buys and data-driven repurchasing decisions to test new products. We directly and active