Reformation’s IPO filing shows profitable DTC is possible

The brand makes 90% of its revenue from DTC, has turned a profit for years and notched 20 consecutive quarters of double-digit revenue growth.

• Touting its scarcity model, womenswear brand Reformation filed a registration statement for a proposed initial public offering with the U.S. Securities and Exchange Commission, according to a company announcement Thursday. The number of shares to be offered and the price range has not been determined, though the brand plans to list on the New York Stock Exchange under the ticker symbol “REF”.

• Reformation reported a net revenue of about $507 million and a net income of $12.6 million in 2025, per a company filing. The brand generated positive net income from 2018 to 2025, except for 2020 due to the COVID-19 pandemic.

• About 90% of the brand’s net revenue comes from its direct-to-consumer channel. Reformation’s patented Retail X store model — a store set up as a showroom with one sample garment on display where customers can build a dressing room using a touchscreen — drives 8.5% higher average order value than its locations without the technology.

Growth and expansion

About 17 years after Reformation was founded, the company is charting its public market debut on the back of two oft-maligned concepts in retail these days: DTC and sustainability.

Unlike sustainable DTC footwear brand Allbirds, which recently sold itself to American Exchange Group, having never made a profit and with sales continuing to plummet, Reformation says it is doing things differently. The retailer’s products have been carbon neutral since 2015, it has been profitable for years already and the company has delivered 20 consecutive quarters of double-digit net revenue growth.

“Our goal is to have a positive impact on people and the planet and prove that it’s possible to build a global fashion brand that delivers both impressive financial and environmental results,” the brand’s SEC filing said. “Our business stands in contrast to traditional retail businesses that can often be characterized by limited direct connection to the customer, imprecise product forecasting and merchandising, frequent promotions, long manufacturing lead times, and slow technological adoption … Not to brag, but after 17 years, we’ve gotten pretty good at this.”

The brand operates 70 owned stores globally in addition to working with 15 wholesale accounts spanning 142 wholesale locations, as of June 22. The brand’s unique Retail X store model made up about 75% of its retail stores as of Q1 of 2026. Reformation’s first-quarter revenue hit $112.3 million, marking a roughly 30% increase year over year.

The company’s S-1 filing also touted its merchandising strategy, noting it produces new styles in small quantities to test them twice weekly on its website and once a week in stores. The resulting dynamic “creates a scarcity model that encourages consumers to frequently engage with us in order to shop what’s new,” the brand said.

Discounting is not a core component of its business, with full-price sales consistently making up about 80% of Reformation’s DTC net revenue from 2021 to 2025.

The company plans to expand its merchandise offerings — with a survey showing customers are interested in intimates and lingerie — and grow its international markets, focusing on newly entered regions such as the United Kingdom, Western Europe and more.