Reformation targets $1B valuation with IPO

Reformation is targeting a valuation of up to $1 billion through its initial public offering. The direct-to-consumer fashion brand’s offering of more than 14 million shares of common stock is expected to be priced between $15 and $17, according to a company announcement Monday.

Nearly 9.5 million of those shares are from Reformation, with the rest from certain existing stockholders. An additional 2.1 million shares of common stock from selling stockholders could also be available for purchase by underwriters under a 30-day option.

Reformation expects to net about $134.5 million from the IPO, assuming a price of $16 per share.

The brand — which expects to have just over 59 million shares of common stock outstanding after the offering — plans to use about $125 million of the net proceeds to partially repay a loan. Reformation also intends to use about $9.5 million of the net proceeds to purchase more outstanding shares and stock options, per an updated S-1 filing on Monday.

Reformation first announced its proposed IPO in June, revealing a healthy apparel business centered around its direct-to-consumer model. The company in 2025 earned a net revenue of about $507 million and a net income of $12.6 million.

Over 30% of its new DTC shoppers were acquired through its retail stores last year and about 75% of its 70 owned stores utilize its patented “Retail X” store model.