FIGS will reward patient investors as customer growth reaccelerates

The growth of some companies has dramatically slowed post-pandemic for various reasons. In the case of stylish scrubs maker FIGS ($FIGS), the company boomed during the early days of the pandemic when the demand for scrubs skyrocketed. However, now the growth has normalized.

In the most recent quarter, sales grew by 11% y/y, which is not considered a high growth rate. Yet, the number of active customers grew much faster, likely the main reason the stock spiked over 20% on Friday.

The growth of active customers actually accelerated sequentially in the third quarter, a sign that FIGS is still underpenetrated and has the potential to gain market share in a large and growing market. Also, profitability jumped during the quarter as the company achieved significant operating leverage. Despite the recent rally, the stock is still undervalued as the company regains momentum after a period of tough comps. Let's take a deeper look.

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