Reformation IPO filing tests U.S. market appetite for apparel listings

Traders Union
All News
Financial News
Reformation IPO tests market

Highlights

Reformation filed for an IPO as the largest U.S. apparel listing since Birkenstock in 2023, seeking to test demand in a recovering IPO market.
Reformation reported $507 million net revenue in 2025, five years of quarterly revenue growth and consistent profitability since 2021, differentiating it from recent struggling peers.
Reformation spent 9% of net revenue on marketing in 2024 compared to Allbirds' 25% pre-IPO, addressing a key concern for direct-to-consumer apparel IPOs.

IPO filing puts focus on apparel demand

As reported by Financial Times, Reformation has filed for an IPO that would make it the largest apparel company to go public since Birkenstock in 2023, putting the sustainable fashion label at the center of a closely watched test for the sector.

The brand, known for eco-friendly production and dresses worn by celebrities including Taylor Swift and Meghan Markle, is entering the market during a strong year for IPOs more broadly. Analysts say the outcome could influence whether other fashion groups move ahead with flotations or continue to wait on the sidelines.

Neil Saunders, managing director of retail researcher GlobalData, says the listing is an "acid test" for apparel in the IPO market. He says a solid performance could encourage more deals, while a weak debut could extend the sector's absence from Wall Street new listings.

According to Reformation's IPO filing, revenue has grown every quarter for the past five years. The company reports net revenue of $507 million in 2025 and says it has remained profitable since 2021.

Sector track record shapes listing stakes

Reformation still needs to break with the pattern set by other direct-to-consumer apparel groups that went public in 2021, including Warby Parker, Allbirds, Figs and Lulus. Those companies leaned heavily on the promise of bypassing intermediaries and selling directly to shoppers, but several later struggled with profitability and investor expectations.

Allbirds, now rebranded as Smartbird, says it sold its brand and footwear assets in June for $41 million, far below its peak valuation of more than $4 billion. Warby Parker remained unprofitable for years before reporting positive net income in 2025, while Nike is shifting attention back toward traditional retail after its direct-to-consumer strategy left it trailing rivals.

Only Birkenstock has gone public in the sector since 2021, and its shares fell almost 13% on their market debut. That record has helped keep fast-growing names such as Skims and Quince in private markets, even as both companies expand and raise capital at higher valuations.

Reformation is also trying to reassure investors on marketing efficiency, a key weakness for earlier direct-to-consumer listings. Its IPO filing says the company spent 9% of net revenue on marketing last year, well below the 25% of net revenue that Allbirds spent in the year before its own IPO.

The company has not set a date for the offering. Even so, its brand visibility remains high, with recent public appearances of Reformation dresses adding to the consumer recognition that investors will be watching closely.

In our earlier article, we covered Anduril’s decision to delay an IPO despite surging investor interest in defense technology and a valuation jump to $61 billion. We noted management’s concern that overheated valuations can lead to weak long-term returns, and that the broader tech IPO market has stayed selective after uneven performance from recent high-profile listings.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.