Reformation's revenue jumps 24.1% for a 21st straight quarter of double-digit growth
Net income jumped 79.4% to $12.4 million even as the stock still trades below its July IPO price of $15.
Reformation reported second-quarter revenue of $155.2 million, up 24.1% year on year, for the period ended 27 June. Chief executive Hali Borenstein called it the company's 21st consecutive quarter of double-digit revenue growth, with gains spread across channels, geographies and product categories rather than concentrated in one area.
Net income climbed 79.4% to $12.4 million, or 23 cents a diluted share, well ahead of the top-line growth rate. Adjusted earnings before interest, taxes, depreciation and amortisation rose 53.9% to $25.4 million, and the adjusted margin expanded by 320 basis points to 16.4%.
Investors responded by pushing the stock up 3.4% to $13.60 in after-hours trading on Thursday. Reformation went public in July at $15 a share, and the stock has traded below that price since, leaving Thursday's move as a partial recovery rather than a return to the offering level.
Borenstein framed the listing as coming from strength rather than necessity. "We are entering the public markets from a position of strength," she said, pointing to top and bottom line increases, room to grow both overseas and at home, and a sustainability message the brand has built its identity around.
Where the growth came from
Direct-to-consumer sales, which Borenstein described as the company's home turf, grew 21.2% to $135.3 million. The company attributed the increase primarily to a 22.9% rise in active customers rather than to higher spending per shopper, pointing to an expanding customer base as the main driver.
Reformation added four new stores during the quarter, bringing its global store count to 70. Wholesale, a much smaller part of the business, grew 48.7% to $19.9 million, with Borenstein crediting strong sell-in and sell-through of the brand's spring and summer collections across existing accounts.
Borenstein said wholesale remains a deliberate, secondary channel rather than a growth engine in its own right. "We remain a DTC-first business," she said, adding that wholesale is used for new customer acquisition, testing international markets and brand elevation, with meaningful room to add doors at existing accounts.
That expansion arrives as several apparel names we have covered this year post their own double-digit gains. Ralph Lauren has extended a winning streak of double-digit growth of its own, and Adanola recently passed £100 million in revenue while betting on North America for its next stage of expansion.
How fast Reformation moves
Speed is central to Reformation's pitch to investors. The company said it gets half its product to market in 60 days or less, with recuts of popular styles arriving in as little as 15 days and as long as 45. That pace lets the brand react quickly to shifting demand.
Borenstein described that responsiveness as part of a broader winning strategy, one that lets Reformation adapt marketing, brand messaging and product offering in real time. She said the company relies heavily on a continuous feedback loop from consumers to keep refining what it puts in front of them.
Reformation is now using artificial intelligence to sharpen that process further. A team is working to quantify precise reorder demand, Borenstein said, helping determine exactly how many units to place on a given purchase order to reinforce full-price selling rather than relying on discounting.
She pointed to the volume of real-time data the business generates across its stores and e-commerce operations, covering both demand and customer engagement, as a resource AI can turn into faster, sharper decisions that reinforce Reformation's existing advantages in speed and agility.
Borenstein was careful to draw a line around where automation belongs. "I'm still a humanist," she said, arguing that AI will not solve every problem in a fashion business where creative talent remains central, and that leaders must decide selectively where it adds the most value.
What the market is weighing
The gap between Reformation's operating momentum and its share price is the awkward part of the story. A 24.1% revenue gain and a 79.4% jump in net income have not been enough to lift the stock back to its IPO level two months on.
That contrast puts Reformation alongside other apparel and beauty names we have tracked this year, including Titan, which opened its financial year with 40% revenue growth on jewellery strength, and Estée Lauder, which returned to growth as Tom Ford and Jo Malone each passed one billion dollars.
Borenstein has not given guidance for the next quarter, and Reformation has not said when it next reports results. What she has committed to is continuing the approach that produced 21 straight quarters of double-digit growth: fast product cycles, a DTC-first channel mix and selective use of artificial intelligence in reordering.
Sources
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