Reformation Inc. (NYSE: REF) began trading on the New York Stock Exchange on Thursday at $15 per share, raising $210.9 million in its initial public offering. The IPO consisted of 14,062,500 shares and was backed by J.P. Morgan, Morgan Stanley, Citigroup, and RBC Capital Markets.
The sustainable fashion brand, founded in Los Angeles in 2009, originally retailored vintage clothing. Over the years, it expanded into Canada, the UK, and France, and as of the first quarter of 2026, it owned 70 stores across those four countries. International buyers contributed just under a fifth of its 2025 revenue.
Reformation reported net revenue of $507.1 million for 2025, with net income of $12.6 million, including the impact of tariffs. The company has posted 21 consecutive quarters of double-digit revenue growth, though a conflicting source states 20 consecutive quarters of double-digit net revenue growth through the first quarter of 2026. Its EBITDA margin last year was 8.9%, and Renaissance Capital expects it to expand to 16% by 2028.
"We believe we will continue to benefit from operating within the highly fragmented fashion industry."
According to Reformation's S-1 filing, the company sees itself as well-positioned to benefit from the fragmented fashion industry and growing global demand for sustainable fashion. Direct-to-consumer sales account for 90% of revenue, with two-thirds of those sales coming from e-commerce. Roughly 80% of all direct-to-consumer sales came from full-priced items in recent years.
In 2025, Reformation saw more than 1 million active customers across its direct-to-consumer channel, with 70% aged between 25 and 50. Among new customers in the last year, 20% were under 25 and 20% over 50. CEO Hali Borenstein told CNBC the customer base is diverse. About 70% of 2025 direct-to-consumer revenue came from repeat customers, and roughly 40% came from members of the Friends with Benefits loyalty program, which requires spending $1,000 and multiple purchases in a calendar year.
Reformation's average consumer makes over $100,000 a year, with two-thirds of active customers earning six figures annually. The brand's customer loyalty is strong: 84% of active customers feel confident wearing the brand, and 77% list Reformation as one of their favorite or all-time favorite brands.
Reformation acquires 75% of new direct-to-consumer customers through unpaid sources. Its supply chain is efficient: the company delivers 50% of products in 60 days or less from purchase order to distribution center.
Despite strong brand metrics, Renaissance Capital noted the IPO price reflects an enterprise value of 1.5 times 2027 expected sales, lower than comparable retailers Aritzia Inc. at 3.3 times and Ralph Lauren Corp. at 2.7 times. Reformation posted over $500 million in sales in 2025.