Sustainable fashion brand Reformation achieves double-digit growth

US sustainable fashion brand Reformation Inc. (Reformation) has reported a 24.1 percent increase in net revenue to 155.20 million dollars for the second quarter ended June 27, 2026, up from the prior-year period.

The second quarter marked the Los Angeles-based company’s 21st consecutive quarter of double-digit top-line expansion and its first financial report since completing its initial public offering (IPO) on the New York Stock Exchange under the ticker REF.

“Reformation is beginning its public company journey from a position of strength. In the second quarter, we delivered 24% net revenue growth across channels and geographies alongside strong profitability,” said Reformation chief executive officer, Hali Borenstein. “This marks our 21st consecutive quarter of double-digit revenue growth, reinforcing our confidence in our ability to deliver against our long-term growth algorithm.”

Margin expansion and global store growth

Growth was achieved across all major sales channels and geographic regions. Direct-to-consumer (D2C) net revenue rose 21.2 percent to 135.30 million dollars. This expansion was primarily driven by a 22.9 percent increase in active customers, reflecting strength in both customer retention and new customer acquisition. D2C net revenue per customer contracted 1.4 percent, which the brand attributed to an influx of new customers who typically start at lower initial spend levels.

Wholesale and other net revenue surged 48.7 percent to 19.90 million dollars due to increased demand from existing retail partners.

Gross margin expanded 230 basis points to 66.7 percent for the quarter, compared to 64.4 percent in the second quarter of fiscal 2025. The improvement was driven by lower average tariff rates and higher average unit retail pricing, which offset the impact of rapid wholesale channel growth.

Net income rose 79.4 percent to 12.40 million dollars, or 0.23 dollars per diluted share, compared to 6.90 million dollars, or 0.13 dollars per diluted share, in the prior-year period. Adjusted EBITDA grew 53.9 percent to 25.40 million dollars, while adjusted EBITDA margin expanded 320 basis points to 16.4 percent.

Geographically, US net revenue increased 21.3 percent to 124 million dollars. International net revenue jumped 36.8 percent to 31.20 million dollars, bolstered by growth across core focus markets and footprint expansion in France.

During the three-month period, Reformation opened four new brick and mortar locations, bringing its global store count to 70 at the end of the quarter.

Full-year 2026 outlook

Looking ahead, Reformation reaffirmed its outlook for full-year fiscal 2026. The company anticipates net revenue between 602 million dollars and 606 million dollars, representing annual growth of approximately 18.6 percent to 19.5 percent.

Full-year adjusted EBITDA margin is expected to fall between 14 percent and 14.2 percent. Capital expenditures for the year are projected between 23 million dollars and 27 million dollars, supporting plans to open 15 to 16 new stores globally over the course of fiscal 2026.