Travis Hoium is buying Figs due to its strong niche business, healthy balance sheet, and attractive valuation, which he believes private equity firms are also recognizing. He sees potential for the company to grow even if not at a high rate, and expects the current buyout offer to either lead to a higher price or catalyze management to improve the business, both of which could benefit shareholders.
“I still think there's a lot of potential in figs long term I would love to see it stay public because I think there is the opportunity to grow the business even if it's not a high growth business if it's just a 5 or 10% growth business at in a really nice niche with really good margins I think that could be a phenomenal business that could trade at maybe double the multiple where it's currently trading today that's why I ended up buying shares I just saw a lot of value in being a niche retailer like this.” — ▶ 8:00