Reformation targets $1bn valuation as IPO process begins

Sustainable womenswear brand Reformation is targeting a valuation of up to $1bn as it begins the roadshow for its initial public offering (IPO) on the New York Stock Exchange.

The Los Angeles-based brand is offering 14.06 million shares of common stock priced between $15 and $17 per share. At the top end of the range, the offering could raise up to $293 million (£218.6 million), with the company’s valuation reaching approximately $1 billion (£746 million) once outstanding shares are taken into account.

Of the shares being offered, around 9.5 million will be issued by Reformation, while the remaining shares will be sold by existing stockholders. Underwriters will also have the option to purchase an additional 2.1 million shares within 30 days of the offering.

The IPO remains subject to market conditions, with Reformation stating there is no guarantee regarding whether or when the offering will be completed or its final size and terms.

The company filed to list on the New York Stock Exchange last month under the ticker symbol REF, with J.P. Morgan and Morgan Stanley acting as lead bookrunners.

Founded in 2009 as a vintage clothing boutique in Los Angeles, Reformation has grown into a global direct-to-consumer fashion business, operating more than 70 stores across the US, UK, Canada and France, while serving customers in more than 150 countries online. 

The brand reported revenue of $507.1 million (£378.3 million) for the year ended 27 December 2025, up from $438.2 million (£327.0 million) the previous year, although net profit declined from $33 million (£24.6 million) to $12.6 million (£9.4 million). In the first quarter of 2026, Reformation recorded revenue growth of 30.4% year-on-year to $112.3 million (£83.8 million).

The IPO follows several years of expansion for the brand, which has positioned itself around sustainable materials, limited-edition collections and a vertically integrated manufacturing model. Around 90% of Reformation’s sales are generated through its own direct-to-consumer channels, with the company also working with wholesale partners including Selfridges, Harvey Nichols and Liberty in the UK.

The listing will test investor appetite for scaled fashion brands built around sustainability, direct retail and strong brand identity, as Reformation joins a wider group of consumer companies exploring public markets.

The owners of Alo Yoga, the Los Angeles athleisure brand, shed their wholesale T-shirt business Bella+Canvas last month, with analysts suggesting this clears a path toward an IPO or strategic deal.

Authentic Brands Group, owner of Reebok, Ted Baker and GUESS, also recently announced a change in its leadership team, with plans to IPO within the next 12 months.