Why Figs Stock Popped Today

Shares of Figs (NYSE: FIGS) soared on Friday after the medical apparel supplier reported earnings that were more than double what investors expected.

Healthy growth

Figs' second-quarter net revenue jumped 28.8% year over year to $196.6 million, driven by a rise in orders and average order value.

The maker of scrubs and other healthcare clothing saw its active customers grow 13.2% to 3.1 million as of June 30. Those customers spent an average of $127 per order, up 8.5% from the prior-year period.

Figs' growth was broad-based. Scrubwear revenue rose 26.5% to $161.2 million, while its non-scrubwear revenue surged 40.3% to $35.4 million. International markets were a notable source of gains, with sales up 67% to $37.9 million.

Tariff refunds helped to drive gross margin up by 8.2 percentage points to 75.2%. They also contributed to a fourfold rise in net income to $28.4 million, or $0.15 per share. That crushed Wall Street's estimates, which had called for per-share profits of $0.07.

This growth story is still in its early chapters

Figs now expects its full-year revenue to grow roughly 20% in 2026, up from a prior forecast of 14% to 16%. The company also boosted its stock buyback program by $100 million.

Peering further into the future, CEO Trina Spear believes Figs has a long runway for expansion still ahead.

"Given that we are still only serving a tiny percentage of the world's healthcare professionals, we believe we are just getting started," Spear said.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Figs. The Motley Fool has a disclosure policy.