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The excitement of your first purchase from Reformation Inc. (NYSE: REF) can spark a customer relationship that lasts years or even decades at the fast-growing women’s apparel brand. Those who buy the company’s shares, which begin trading Thursday on The New York Stock Exchange, may also become long-term fans of their investment.
Reformation, which got its start in Los Angeles in 2009 retailoring vintage clothing with a focus on sustainability, has since exploded into a global business with over $500 million in sales last year. In its early days, the company was focused mainly on dresses but has since diversified across tops, bottoms, denim, shoes and accessories.
Observers of the fashion industry know that trends can be subject to fickle trends and be ultra age-specific, but Reformation has captivated women across a wide demographic spectrum over time. And those shoppers have shown serious proof of loyalty.
Consider some of the the long-term and recent trends. The company has posted 21 consecutive quarters of double-digit revenue growth, an impressive feat. But the real magic is who’s behind that growth: Many of the same shoppers who keep coming back, with 70% of 2025 direct-to-consumer revenue from repeat customers.
There are several reasons to explain why customers return consistently. First, the company’s product selection resonates across generations, with its initial focus on millennials now reaching Gen X and Gen Z alike. To put that in plain terms, a common sight at Reformation is a mother and daughter shopping for themselves in the same store, despite being a full generation apart in age.
The brand also has a quality that’s hard to capture or recreate: Making customers feel great about themselves. Some 84% of active customers feel confident wearing the brand and 77% list Reformation as one of their favorite or all-time favorite brands, according to a company survey.
Another key to success is Reformation’s careful handling of its customers. Direct-to-consumer sales account for 90% of revenue, with two thirds of that coming from e-commerce. Customers are willing to pay for what they like, with roughly 80% of all direct-to-consumer sales coming from full priced items in recent years.
Reformation has a smart loyalty strategy with its best customers. Those who spend $1,000 and make multiple purchases in a calendar year are invited to the Friends with Benefits program, which comes with a host of benefits to keep shoppers happy. Perks include early access to special edition launches, sales and a direct line to Reformation experts.
Such a strategy is especially compelling given two thirds of active customers are relatively affluent, earnings six figures annually. Approximately 40% of direct-to-consumer sales via Friends with Benefits members.
The company is also very tech savvy, using data from purchases to make real-time inventory replenishments decisions. That helps Reformation effectively roll out new items very regularly, twice a week online and once a week in its stores. Reformation’s supply chain is also extremely efficient, delivering 50% of products in 60 days or less, from purchase order to distribution center.
To keep current, Reformation also turns heads with timely releases tied to cultural and fashions trends. Take its recent launch, which Marie Claire described as a Caroyln Bessette Kennedy coded collection that “expertly tapped into the iconic New Yorker’s style sensibilities.”
Such exposure along with word of mouth and social media can attract customers organically without the need for extra marketing spend. Indeed, 75% of new direct-to-consumer customers are acquired through unpaid sources.
The company has an important footprint of retail locations that serve as state-of-the art showrooms, keeping ample inventory for shoppers to walk out the door with those purchases. There’s even tech to order different styles and designs straight to the dressing room while you’re onsite. Such venues also help e-commerce in the era of online-dominant shopping because customers can discover a style in person and later buy it on a smartphone wherever they may be.
Reformation also has a truly global brand presence, with just under a fifth of 2025 revenue coming from international buyers. The company has expanded into Canada, the U.K. and France but dozens are other markets may be prime for entry in years to come.
Put together, all this adds up to impressive financial metrics. In addition to blistering top-line growth, the company has been Ebitda positive for years and looks set to drive margins higher. The company posted an Ebitda margin of 8.9% last year and that should expand to 16% in 2028, according to a research note from Renaissance Capital.
The best news this week for potential investors may be that the IPO was priced conservatively at $15 a share. The IPO price reflects an enterprise value of just 1.5 times 2027 expected sales, according to Renaissance Capital. That compares with multiples 3.3 times for Aritzia Inc. and 2.7 times for Ralph Lauren Corp.
Reformation’s formula makes customers across generations and geographies look and feel their best. The IPO shares, backed by growth, profits and a uniquely loyal clientele, also have what it takes to make a portfolio shine.
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