Reformation’s proposed IPO: 4 notable numbers

After a few years of the industry suggesting DTC-focused businesses might be dead, Reformation’s proposed initial public offering this month proved the model could still be profitable.

But the brand’s proposed IPO filing reveals more than just a consistent positive net income. It gives a glimpse into the value of brick-and-mortar, the importance of attracting new shoppers outside paid online channels and more.

Here’s a look at some notable numbers from Reformation’s filing:

That means the company has been able to avoid a core pitfall other DTC brands have faced in recent years: the surging cost to acquire new customers through paid digital channels. 

Reformation’s lack of reliance on such channels has strengthened the unit economics of its customer acquisition efforts, per the filing. The brand surpassed 1 million active customers across its DTC channel in 2025, and over 70% of its customer base is between the ages of 25 and 50.

“We have maintained a low marketing to net revenue ratio of 9% for the last four years, and are profitable on a first order basis,” the company said in its filing. 

The total consists of about $10 million in IEEPA tariffs imposed on the brand and about $8 million imposed on the company’s vendors that were passed on to Reformation. The brand is evaluating “administrative and legal channels to pursue its rights to these refunds,” though it acknowledged there is uncertainty about the timing and process of those options.

Publicly traded retailers have been releasing more details on their exposure to IEEPA tariffs over the past few quarters. The Supreme Court ruled against President Donald Trump’s use of an emergency powers statute to impose such tariffs in February, with many companies then suing for refunds, as well as applying for them through the U.S. Customs and Border Protection’s portal.

The fashion brand’s stores are a core aspect of its performance. About 75% of the brand’s 70 owned stores across the globe utilize its patented “Retail X” store model, which includes features like allowing customers to request new sizes and styles via touchscreen.

Reformation’s customers who shopped both online and in stores purchased about five times a year on average, generating about 3.1 times higher annual net spend compared to shoppers who only utilized one of those channels.

However, 34% were made in North America. The brand in 2024 leased and started making improvements to a new California-based facility, which formally opened in 2025.

About half of Reformation’s products arrive at its distribution center in 60 days or less. Meanwhile, about 65% of its product reorders have been manufactured in the same timeframe.

“We operate a smart, responsive merchandising model that combines data-driven product merchandising with agile manufacturing,” the company said in its filing regarding the small quantity manufacturing approach it takes. “Our fast production, complemented by our factory and distribution center in Los Angeles, offers superior lead times relative to industry norms, enabling us to quickly and sustainably chase into winning designs.”