FIGS (FIGS) Slipped Despite Reporting Strong Quarter

Despite reporting a strong quarter, FIGS, Inc. (NYSE:FIGS), a direct-to-consumer healthcare apparel company specializing in scrubwear for medical professionals, saw its shares slip in the latest reported data. In its Q2 2026 investor letter, Baron Capital, the fund managing FIGS, pointed out that the stock's underperformance was primarily due to investor positioning rather than company performance.

FIGS, Inc. had reported a robust first quarter, with revenue growing 28% to $159.9 million, surpassing both company guidance and industry expectations. Additionally, the company's active customer base had reached 3 million for the first time, marking a 12% year-over-year increase. Baron Capital remains positive about FIGS' business model and growth prospects in the global healthcare apparel industry but highlighted that other AI-related stocks may present greater upside potential with lower risk.