Figs

Lululemon carved out a defensible niche in the high-growth yoga apparel, activewear, and athleisure markets. Figs is disrupting legacy healthcare apparel makers ...

Figs has been growing faster than the broader industry, but analysts only expect its revenue to grow at a CAGR of 23% from 2021 to 2024. [better all-around investment](https://www.fool.com/investing/2022/10/07/down-20-in-2022-is-lululemon-stock-a-buy/) than Figs, which has yet to prove that it can continue to grow for years without saturating its own market. It ended the second quarter of 2022 with just 2 million customers, and it expects its revenue to only grow 22%-26% for the full year. Other companies, including Lululemon, could also eventually launch similar sub-brands to tap into the growth of its fitted healthcare apparel market. Back in April 2019, Lululemon launched a "Power of Three" plan aimed at doubling its digital revenue, doubling its men's revenue, and quadrupling its international revenue (relative to fiscal 2018, which ended in February 2019) by fiscal 2023. healthcare apparel industry would grow at a CAGR of 6.1% between 2020 and 2025. Its total number of customers more than doubled to 1.3 million in 2020, then grew 46% to 1.9 million in 2021. So unless its growth significantly accelerates or it makes some unexpected acquisitions, it could take more than a decade for Lululemon's stock to soar another 400%. [LULU](/quote/nasdaq/lulu/) -2.81%) and Figs ( [FIGS](/quote/nyse/figs/) -1.52%) might not have a lot in common. Most of its competitors across the fragmented medical garment market still sell their products through brick-and-mortar stores. Once again, it plans to double its digital and men's revenues, as well as quadruple its international revenue, from fiscal 2021 to fiscal 2026. But after a promising start last year, Figs' stock now trades more than 60% below its IPO price of $22.