Reformation’s inaugural earnings call as a publicly traded company highlighted the brand’s robust growth and loyal customer base, with a 24% increase in net revenue in the second quarter compared to the previous year, reaching $155.2 million. The company’s net income was reported at $12.4 million. CEO Hali Bornstein confirmed 21 continuous quarters of double-digit revenue growth, underscoring the strength of its direct-to-consumer approach.
Despite challenges faced by other DTC companies like Everlane and Allbirds, Reformation thrives with 90% of its 2025 revenue originating from its website or owned stores. The company maintains some wholesale partnerships, notably with Nordstrom. While new customers initially spend less, the brand believes that over time, these customers’ value will increase significantly. Reformation expects new customer expenditures to grow substantially in the second year and beyond.
Reformation’s strategy capitalises on rapid data-driven merchandising, with over half of its products being manufactured within 60 days. This allows the company to swiftly adapt to customer preferences, enhancing loyalty by directly responding to consumer demands rather than forecasting far in advance like traditional brands.
Bornstein pointed out that 84% of Reformation’s customers feel confident wearing their products, demonstrating the brand’s impact beyond mere sales. The company’s focus on expanding its store footprint is also pivotal. Currently, with 70 stores, including 10 internationally, Reformation plans to double the number within five years. International markets contributed to 20% of the net revenue during Q2.
Diversity in its customer base was emphasised, with 20% of new customers under 25 and another 20% over 50 in 2025. A notable trend is that three-quarters of customers shopping for their daughters end up purchasing items for themselves, indicating the brand’s broad appeal. Bornstein emphasised that Reformation transcends specific demographics, resonating with various age groups by connecting with a mindset and attitude.
Reporting based on coverage first published by modernretail.co.