Reformation targets up to $239 million in US initial public offering

Reformation is seeking to raise as much as $239 million in an initial public offering, with the apparel company and existing investors planning to sell about 14 million shares at $15 to $17 each. At the top of that range, the offering would give the 17-year-old, sustainability-focused brand a market value of up to $1 billion, according to a Monday filing with the Securities and Exchange Commission.

The IPO is expected to price on July 29, Bloomberg News reported, citing a market presentation. Pricing is the point at which the company and its underwriters set the final offer price, based on investor demand, before shares begin trading publicly.

Reformation’s filing presents the company as a digitally led retailer built around a direct relationship with shoppers. The company said it created its model to challenge conventional fashion retail, contrasting its approach with businesses it said often rely on weaker customer links, slower production cycles, less precise merchandising and heavier discounting.

Direct-to-consumer sales accounted for about 90% of Reformation’s revenue last year, according to the filing. In that model, a brand sells through its own channels, such as its website or stores, rather than relying mainly on department stores or other wholesale partners. The structure can give companies more control over pricing, customer data and merchandising, while also placing more of the burden for marketing, logistics and customer acquisition on the brand.

Reformation said it passed 1 million active customers across its direct-to-consumer channel during 2025. The company had about 1.14 million active customers as of March 28, according to the SEC filing.

The company identified several risks for prospective investors. Its filing cited the possibility that weaker consumer spending could affect demand. It also pointed to the potential effect of continuing US tariffs, which can raise costs for retailers that source goods or materials across borders.

The listing would bring another consumer brand with a strong direct-sales orientation to public markets at a time when the economics of that model remain under scrutiny. PYMNTS reported earlier in July that several companies associated with the direct-to-consumer era have reassessed the balance between owned channels and broader distribution, after years in which many brands invested heavily in websites, stores and customer data systems.

That PYMNTS analysis cited Nike’s 12% decline in digital sales as one example of brands rebalancing channel strategy. It also pointed to Casper’s decision to go private after struggling as a listed company, SmileDirectClub’s bankruptcy and Allbirds’ asset sale tied to a shift toward artificial intelligence.

Reformation’s filing does not present those cases as direct comparisons. The broader context for investors is that a recognizable consumer brand and an efficient distribution system can produce different financial outcomes, particularly when marketing costs, inventory planning and consumer demand shift.

This story draws on original reporting from PYMNTS.