AMDP Proposal - DRAFT

MEMORANDUM

TO:        Clark Hansen, CEO of AMDP

FROM:    Queenie Tu, Research & Development Analyst at AMDP

SUBJECT:    Possible Investment Opportunity with FIGS Inc.

DATE:    February 25, 2023

As a member of Anima Mundi’s Research and Development department, I am responsible for finding companies that align with our company’s mission of being socially responsible, environmentally sustainable, while being profitable too. After extensive research, I discovered FIGS Inc, a medical apparel company, that suits our criteria as a social enterprise worthy of our company’s investment. This memo will cover:

• Our company’s standards for investment
• The background and financial analysis of FIGS Inc.
• My final investment recommendation for FIGS Inc.

AMDP’s Investment Standards

Here at Anima Mundi, we focus on these following concepts when finding companies that will suit our company’s standards and core values:

• Triple Bottom Line: Firms should be committed to measuring their social and environmental impact in addition to financial performance. This can be measured through the Three P’s: Profit, People, Planet (Miller).
• Profit: Companies are conscious of their power to use their businesses to positively affect change in the world while maintaining financial performance
• People: Shifting the focus towards creating value for all stakeholders (such as customers, employees, and community members) instead of shareholders only
• Planet: Companies are conscious of their power in driving positive change in climate change issues and consciously cut down on energy consumption and streamline supply chain operations
• Corporate Social Responsibility: Management concept in which companies integrate social and environmental concerns in their business operations, interactions, and values with their stakeholders (Unido).
• Social Enterprise: Business with specific social objectives that serve as its primary purpose; the business seeks to maximize profits and maximize benefits to society and the environment (Barone).
• Carbon Footprint: Total amount of greenhouse gases (including carbon dioxide and methane) associated with the activities of a person or other entity (e.g. building, corporation, etc.). This is calculated through multiple avenues such as Greenhouse Gas Protocol and ISO 14064 (Selin).
  

FIGS Inc.

Company Background
Founded by Co-CEOs Heather Hasson and Trina Spear in 2013, FIGS is a Santa Monica based direct-to-consumer medical apparel brand. As claimed on their website, they “create technically advanced apparel and products that feature an unmatched combination of comfort, durability, function, and style, all at an affordable price” for healthcare professionals. Their idea stemmed from talking to a healthcare friend who shined a lacking market for comfortable scrubwear, especially as their work entails wearing their uniforms for 12+ hours at a time.

In addition to being a technologically advanced apparel-wear company, they began their Threads for Threads initiative in their early years to donate scrubs to healthcare professionals working in resource-poor countries. In 2022, FIGS also publicly advocated for the development of the Awesome Humans Bill, which aims to support more mental health services and protections for healthcare professionals, higher and more equitable pay, and increasing safety standards for current professionals and training opportunities for future ones.

Threads for Threads

• Talk about T4T, how the initiative is run, its impact over time
  

Continual Business Growth 

• Talk about company financials from Mergent, how their revenue has doubled from 2020-21, and is shown to have a CAGR of 56%, which is great considering the economy average is 8-12% for large corporations and 15-25% for high-risk companies.

Promising Medical Apparel Industry

• Talk about the rise of the medical apparel industry, how FIGS is seen as the Lulu's of healthcare apparelwear
  

Final Investment Recommendation