Investment Comparison Between FIGS and Gildan
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- FIGS Market Performance: In FY 2025, FIGS reported revenue of $631.1 million, a 13.6% increase, with a net income of approximately $34.2 million, indicating strong brand expansion in the healthcare apparel market, although it faces operational risks due to reliance on a single fulfillment center in Arizona.
- Gildan's Steady Growth: Gildan achieved revenue of about $3.7 billion in FY 2025, a 12.5% increase, with a net income of approximately $405.9 million and a net margin of 11.0%, benefiting from a large-scale vertically integrated manufacturing model that ensures stable profitability in a competitive market.
- Risk Analysis: FIGS faces challenges from supply chain concentration and geopolitical risks, particularly with its main production bases in Vietnam and Jordan, while Gildan is affected by raw material price volatility and international trade policies, although its multi-brand strategy provides some buffer.
- Valuation Comparison: FIGS has a forward P/E ratio of 45.2, significantly higher than Gildan's 13.4, indicating that while FIGS shows higher growth potential, its elevated valuation may pose greater risks for investors, whereas Gildan offers a more attractive value investment opportunity.
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Analyst Views on FIGS
Wall Street analysts forecast FIGS stock price to fall
5 Analyst Rating
2 Buy
2 Hold
1 Sell
Hold
Current: 11.580
Low
7.50
Averages
10.70
High
15.00
Current: 11.580
Low
7.50
Averages
10.70
High
15.00
About FIGS
FIGS, Inc. operates as a direct-to-consumer healthcare apparel and lifestyle brand. The Company sells products designed to serve the particular needs of healthcare professionals primarily through its direct-to-consumer (DTC) digital platform, consisting of its Website, mobile app and B2B business (TEAMS). Its offerings include scrubwear and non-scrubwear, such as outerwear, underscrubs, footwear, compression socks, lab coats, loungewear, and other apparel. Its non-scrubwear products are designed as an integrated system that complements its scrubwear and are comprised of base layer and outer layer products. Its underscrubs include sports bras, performance leggings, performance tops and super-soft pima cotton tops. Its under underscrubs include several styles of underwear. Its outer layer products include footwear, lab coats, and a variety of vests, jackets, and fleeces. The Company also offers necessities, such as scrub caps, lanyards, badge reels, tote bags, baseball caps, and beanies.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- FIGS Market Performance: In FY 2025, FIGS reported revenue of $631.1 million, a 13.6% increase, with a net income of approximately $34.2 million, indicating strong brand expansion in the healthcare apparel market, although it faces operational risks due to reliance on a single fulfillment center in Arizona.
- Gildan's Steady Growth: Gildan achieved revenue of about $3.7 billion in FY 2025, a 12.5% increase, with a net income of approximately $405.9 million and a net margin of 11.0%, benefiting from a large-scale vertically integrated manufacturing model that ensures stable profitability in a competitive market.
- Risk Analysis: FIGS faces challenges from supply chain concentration and geopolitical risks, particularly with its main production bases in Vietnam and Jordan, while Gildan is affected by raw material price volatility and international trade policies, although its multi-brand strategy provides some buffer.
- Valuation Comparison: FIGS has a forward P/E ratio of 45.2, significantly higher than Gildan's 13.4, indicating that while FIGS shows higher growth potential, its elevated valuation may pose greater risks for investors, whereas Gildan offers a more attractive value investment opportunity.
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- FIGS Growth Potential: In FY 2025, FIGS reported revenue of $631.1 million, a 13.6% increase, with net income soaring to $34.2 million, indicating strong brand loyalty and market expansion in the healthcare apparel sector.
- Gildan Stability: Gildan achieved approximately $3.7 billion in revenue for the same fiscal year, with a net income of $405.9 million and a net margin of 11%, showcasing its robust profitability and stable market position in the basic apparel segment.
- Operational Risk Comparison: FIGS relies on a single fulfillment center in Arizona, making it vulnerable to disruptions that could impact product delivery, while Gildan's vertically integrated manufacturing model mitigates such risks, ensuring higher supply chain stability.
- Market Competition Landscape: FIGS faces intense competition from traditional wholesalers like Barco Uniforms, whereas Gildan competes with large manufacturers like Hanesbrands in the everyday apparel market, highlighting their distinctly different market strategies.
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- Strong Performance: Figs reported Q1 revenue of $159.9 million, a 28% year-over-year increase that surpassed analyst expectations of $152.8 million, indicating robust performance in the healthcare apparel market despite market concerns over customer acquisition dynamics.
- Profitability Improvement: The adjusted EPS of $0.03 exceeded the consensus estimate of $0.02, reflecting improvements in cost management and operational efficiency, although the company still faces pressures from tariffs and rising freight costs.
- Accelerated Customer Growth: Active customers increased by 328,000 year-over-year, demonstrating Figs' success in acquiring new customers and retaining existing ones, which supports the company's future growth potential.
- International Expansion Strategy: Figs operates in 85 markets, achieving double-digit growth in established regions like France, Germany, and Mexico, indicating that its “Go Deep” and “Go Broad” strategies will drive long-term growth.
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- Earnings Beat: Figs reported Q1 earnings of $0.03 per share and sales of $159.9 million, surpassing analyst expectations of $0.01 and $152.5 million, indicating strong performance in the medical apparel sector.
- Strong Sales Growth: Despite a robust 28% sales growth in Q1, with scrubwear up 27% and non-scrubwear up 31%, investor disappointment over future guidance led to a significant stock price drop.
- Cost Management: Figs managed to keep operating costs up only 23%, slower than sales growth, while gross margin slightly improved to 65.09%, showcasing effective cost control, although overall profitability remains a concern.
- Conservative Guidance: Figs' guidance for 2026 sales growth of only 14% to 16% is lower than the Q1 growth rate, though it exceeds Wall Street's expectation of 12%, yet investor concerns about future growth prospects have resulted in substantial stock volatility.
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