Reformation targets $239m NYSE IPO despite profit drop
Permira-backed fashion brand Reformation is seeking to raise up to $239m in a New York listing that will test investor appetite for a direct-to-consumer retailer experiencing widening losses despite robust revenue growth.
Reformation has filed to sell 14.06 million shares on the New York Stock Exchange under the ticker REF, with a proposed price range of $15 to $17. The offering comprises 9.47 million newly issued shares, with the remaining 4.58 million being sold by existing stockholders.
JP Morgan and Morgan Stanley are serving as joint lead bookrunners, joined by Citigroup and RBC Capital Markets. Underwriters have a 30-day option to purchase an additional 2.10 million shares from selling stockholders to cover over-allotments, though the deal's completion remains subject to market conditions.
The retailer's financial trajectory presents a mixed picture for prospective investors. For the year ended 27 December 2025, revenue grew 16% to $507.1m. However, net profit nearly halved, falling to $12.6m from $33m the previous year.
That margin pressure accelerated into the first quarter of 2025. Revenue for the period ending 28 March climbed to $112.3m from $86.1m, but the net loss more than doubled to $12.1m compared to a $5.6m deficit a year earlier.
Reformation has built a highly digital business, with 90% of its 2025 revenue generated through direct-to-consumer channels. The brand operates 70 physical stores across the US, UK, Canada and France, alongside an e-commerce platform reaching over 150 countries.
The company's active customer base grew past one million last year, reaching 1.14 million by late March. Whether that expanding audience can be converted into sustainable profitability will dictate the valuation the listing achieves when it prices.
