Shares of Figs Inc. hovered around $7 last month — a 70% dip from November 2021. The tepid third-quarter earnings report did not help, prompting the Santa Monica-based health care apparel brand to revise its revenue guidance for 2022 to $495 million, down from a range of $510 million to $530 million.

Chief Executive Catherine Spear said that “the sustained level of inflation (has) began to weigh more heavily” on Figs’ customers, who according to surveys still love the brand but are “pulling back on purchases due to their tighter budget.”

Company management, discussing gross margin decreases cited increased freight costs, higher promotions mix and recent product launches that “did not generate the same sales lift we have typically seen in the past,” during a call with analysts on Nov. 10.
While Wall Street remained on the fence about the value of Figs’ stock, the company did notch a major win last month.

Its protracted legal battle with a Chatsworth-based competitor came to an end on Nov. 4, when a jury from the US District Court for the Central District of California found that Figs did not falsely advertise that its “scrubs kill bacteria and infection immediately on contact,” which would have been a violation of the Lanham Act.

Strategic Partners Inc., which changed its name to Careismatic Brands Inc., filed the lawsuit in 2019, seeking more than $120 million in lost profits and punitive damages. It also raised an issue with Figs’ statements that its “scrubs reduce...

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