Reformation Inc., a sustainable womenswear brand, is planning its public debut. If shares price at the top of the range, the company's total equity value would be close to $1 billion, according to the share count in its registration document.
The big banks handling the sale are JPMorgan Chase & Co. and Morgan Stanley. Permira Holdings, which backed Reformation, is one of the shareholders cashing out some of its stake in the offering.
The company is still losing money.
For that quarter, the gross margin stood at 70.3%, with the IEEPA tariff refund contributing approximately 900 basis points of that figure.
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A company representative said, "Reformation built its business on selling directly to customers online." About 90% of its 2025 revenue came from its direct-to-consumer channel. As of March 28, 2026, the brand had about 1.14 million active DTC customers.
Founded in 2009, Reformation promotes an eco-friendly supply chain paired with a tech-driven shopping experience. Reformation's IPO comes at a time when investors are scrutinizing profitability alongside environmental credentials, making its public market debut a test case for eco-conscious fashion companies.
Originating in Los Angeles as a modest vintage-inspired brand, Reformation has evolved into a leading figure in eco-friendly fashion. Its focus on eco-friendly materials, carbon offset programs, and transparent supply chains has attracted a loyal customer base. The brand operates a handful of physical stores but remains primarily an online retailer.
The broader sustainable apparel market has expanded rapidly, yet many companies in this space struggle to achieve consistent profitability due to higher production costs and marketing expenses. Reformation's ability to command premium prices while scaling its digital operations will be closely watched by investors. This IPO will serve as a bellwether for the sector, testing whether sustainability can be a profitable differentiator in a crowded retail environment.
Reformation's reliance on direct-to-consumer sales has driven strong top-line growth, but the company's ability to turn a profit remains unproven. The gross margin boost from the IEEPA tariff refund suggests external factors are temporarily improving profitability. Meanwhile, Permira's decision to sell down its stake in the offering signals that early investors are seeking to cash out, which can sometimes dampen demand if the market views it as a lack of long-term conviction. The IPO will test whether sustainable fashion can command a premium valuation despite persistent losses, especially as the broader retail sector faces rising costs and shifting consumer spending.
Reformation is still a private company right now, but that changes on July 29.
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