Reformation heads to the NYSE after topping $500 million in sales

Reformation is taking its polished, responsible-fashion formula to the New York Stock Exchange after topping $500 million in annual sales, a threshold that turns a once-niche Los Angeles boutique into a serious public-market test. The company reported revenue of $507.1 million for the year ended December 27, 2025, up from $438.2 million a year earlier, while net profit eased to $12.6 million from $33 million.

The numbers tell a cleaner growth story than a margin one. Reformation said first-quarter 2026 net revenue rose 30.4% year on year to $112.3 million, extending a run of 20 consecutive quarters of double-digit growth. Even with profits thinner, the brand has built the sort of repeat business that investors like to see in a label that still trades heavily on style: about 90% of revenue comes through direct-to-consumer channels, and repeat buyers generate the majority of sales.

That matters because Reformation is not just another apparel listing. Founded in 2009 as a vintage clothing boutique in Los Angeles and now based in Vernon, California, it has scaled its slip dresses, denim and occasion pieces into a business that reaches far beyond its California origins. The company said it surpassed one million active customers in 2025 and reached 1.14 million by late March 2026, while selling through about 66 to 70 stores across the U.S., U.K., Canada and France and shipping to customers in more than 150 countries online.

The ownership structure also makes the offering feel like a stress test for the category. Private equity firm Permira bought a majority stake in 2019 and will continue to exercise significant influence after the listing. Founder Yael Aflalo remains a major shareholder through a family trust, and Hali Borenstein, who became chief executive in 2020, has overseen the brand’s climb into a far larger commercial bracket. J.P. Morgan, Morgan Stanley, Citigroup and RBC Capital Markets are among the underwriters, and Reformation plans to use part of the proceeds to repay debt and repurchase shares from certain existing investors.

The timing is favorable, too. U.S. Securities and Exchange Commission data show IPO activity and proceeds rose in 2025 versus 2024, giving Reformation a warmer market than many consumer brands have faced in recent years. The listing has been years in the making: by 2023, Reformation was already exploring an IPO after annual revenue passed $300 million. Now the question is sharper, and more expensive: whether a sustainability-led fashion house can keep its margins disciplined, its supply chain credible and its image intact once it has to answer to the market every quarter.