Reformation Prices IPO at $15 a Share, Valuing It Below Peers

Corporate Action
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Summary · why it matters

Reformation Inc. priced its initial public offering at $15 per share, giving the sustainable apparel brand an enterprise value of just 1.5 times expected 2027 sales, well below multiples for Aritzia Inc. and Ralph Lauren Corp. The company, which posted over $500 million in revenue last year and a 34% annualized growth rate since 2015, saw a 30% revenue increase in the first quarter of 2026. Customer loyalty is a key strength, with 70% of 2025 direct-to-consumer revenue coming from repeat clients, and over 70% of customers falling between ages 25 and 50. Approximately 67% of active customers earn more than $100,000 in annual household income, and the brand has diversified beyond its traditional dress core into denim, shoes, and accessories. Reformation has just 1% market penetration in the U.S. women's 18-to-60 demographic, signaling significant room to grow.

Impact on stocks 2

Consumer Discretionary▼ · 2 stocks
Ralph Lauren Corp Class A
RL
▼ NegativeCapitalrelevance

Reformation's IPO pricing at a lower multiple than Ralph Lauren suggests a lower valuation benchmark for the sector.

Off-coverage companies 2

Reformation Inc.Private▲ Positive
Capitalrelevance

Reformation priced its IPO at $15 per share, with strong revenue growth and customer loyalty, indicating a successful public debut.

Aritzia Inc.Private▼ Negative
Capitalrelevance

Reformation's IPO pricing at a lower multiple than Aritzia implies a relative valuation discount for Aritzia's peer group.

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