Healthcare apparel company FIGS, Inc.’s (FIGS) shares plunged in price following the CFO’s December 10 retirement announcement and are currently trading at less than $25. However, the company raised its revenue outlook for its fiscal year 2021. So, is it wise to buy the dip in the stock now? Read on.Direct-to-consumer healthcare apparel and lifestyle company FIGS, Inc. (FIGS) made a stellar stock market debut on May 27, 2021. Its shares soared nearly 29% in price that day, valuing the company at $4.57 billion. FIGS has also raised its revenue outlook for its fiscal 2021. Its revenue is expected to be $410 million this year, versus a $395 million previous expectation.
However, the stock has lost 26.4% in price over the past month and 41% over the past three months to close yesterday’s trading session at $22.94, after hitting its 52-week low of $22.43.
Its shares plunged after the announcement of the retirement of its CFO Jeffrey Lawrence on December 10. Also, FIGS faces competition from smaller manufacturers, such as Scrubs & Beyond and Jaanuu. So, its near-term prospects look uncertain.