Reformation Looks to Raise as Much as $239M in IPO

Reformation is seeking as much as $239.1 million in its Wall Street debut as the Los Angeles label looks to test investor appetite for sustainable fashion. 

Reformation, which built a brand selling dresses made from deadstock fabric, said it expects its initial public offering to be priced between $15 and $17 per share. 

The IPO is the first time a California fashion company has sought to raise money in the public markets since San Francisco sustainable footwear brand Allbirds raised $348.3 million at $15 per share in 2021. Notably, Allbirds is now Smartbird, after American Exchange Group paid $39 million for the company in March and then transitioned the business to an artificial intelligence focus. 

Reformation, which is majority owned by private equity firm Permira, will trade on the New York Stock Exchange as REF in a move that would value the company at $1 billion.  

Launched in 2009 by Yael Aflalo, who sits on the company’s board, Reformation was part of a wave of digital-first brands that bypassed the wholesale route to sell directly to its consumers. Aflalo first began selling vintage in a physical store before going online. Reformation re-entered brick-and-mortar in 2017 with a tech-heavy San Francisco store and then a Culver City door at the Platform retail center. That store fleet has now grown to 70 locations. 

In 2018, Reformation entered the wholesale channel with a deal to bring the label to Nordstrom. That was followed up with Net-a-Porter in 2019. The company now has 15 wholesale accounts, equating to 142 doors mostly in the United States. 

Despite the entry into wholesale, direct-to-consumer, continues to be the main generator of the company’s revenue. The channel accounted for 90 percent of the company’s business last year, according to a Securities & Exchange Commission filing.

Last year, Reformation generated net revenue of $507.1 million, which was up about 16 percent from the prior year, according to an SEC filing. The company recorded 2025 net income of $12.6 million, which was down from $32.9 million notched in 2024.