Reformation Inc. Reports 24.1% Revenue Growth to $155.2 Million in Latest Quarter

Reformation Inc. reported significant financial growth in its latest quarterly filing, with net revenue reaching $155.2 million for the 13 weeks ended June 27, 2026, a 24.1% increase from $125.1 million in the same period last year. The company's gross profit also saw a substantial rise, climbing to $103.5 million, up 28.4% from $80.6 million. This growth was driven by a 21.2% increase in direct-to-consumer (DTC) revenue, which totaled $135.3 million, and a 48.7% increase in wholesale revenue, which reached $19.9 million. The company's net income for the quarter was $12.4 million, compared to $6.9 million in the prior year, reflecting a 79.4% increase.

In terms of operational metrics, Reformation's active customer base grew to approximately 1.2 million, a 23% increase from 1.0 million in the previous year. The company expanded its store count from 53 to 70 locations, contributing to its customer acquisition and retention efforts. However, the DTC net revenue per customer slightly decreased by 1.4% to $417, attributed to the influx of new customers who typically have lower initial spending levels. The company’s gross margin improved to 66.7%, up from 64.4%, primarily due to lower average tariff rates and higher average unit retail prices.

Strategically, Reformation has made significant moves, including a recent amendment to its credit agreement that provided an additional $52 million in term loan borrowing and extended the maturity date to June 2031. The company also declared a recapitalization dividend of $1.63 per share, amounting to $89.7 million, which was funded through the proceeds of the amended credit agreement. This dividend was part of a broader strategy to enhance shareholder value following its initial public offering (IPO) on July 31, 2026, where it raised approximately $132.2 million.

Looking ahead, Reformation aims to capitalize on its growth momentum by expanding its product offerings and increasing its presence in international markets. The company plans to enhance its marketing strategies to further boost brand awareness and customer engagement. However, it also faces challenges, including potential impacts from tariffs and the need to manage operational costs effectively. The management remains optimistic about the company's long-term growth prospects, emphasizing its commitment to sustainable fashion and operational excellence.