Hali Borenstein stood on the trading floor of the New York Stock Exchange, a moment that marked a significant turning point for Reformation. The clothing brand, which she has led as CEO since 2020, recently completed its initial public offering, raising $210.9 million and achieving a market valuation of approximately $890 million. This milestone comes after a period of considerable growth and strategic adjustments under Borenstein’s leadership, particularly since private-equity firm Permira acquired a 65% controlling interest in 2019.
The company’s journey to this point began in 2009 with founder Yael Aflalo, who stepped down in 2020 but remains on the board. Reformation built its reputation on dresses, though its product range has since diversified significantly. A key aspect of its business model, and one that likely resonated with investors, is its strong full-price sales performance. Over the past four years, 80% of its direct-to-consumer revenue has come from sales at full price, a notable achievement in a retail landscape often dominated by discounting. Furthermore, the brand boasts impressive customer loyalty, with 77% of active customers identifying Reformation as one of their favorite brands or their all-time favorite.
Borenstein articulated her vision of the brand’s potential, stating that the intention is to reposition the role of the fashion brand and make it more modern. This forward-looking approach extends beyond product lines and into how Reformation engages with its audience, including potential investors. Despite its IPO being somewhat overshadowed by Jersey Mike’s listing on the same day, Reformation opted for a delayed, distinct celebration, reflecting its preference for doing things its own way.
The brand’s unique voice, typically seen in its engaging email marketing and social media presence, was notably consistent throughout its investor roadshow and even in its S-1 filing. Instead of a conventional presentation, Reformation produced a “Big Short-style” video featuring models in bathtubs advocating for investment in $REF. Its S-1, a document usually characterized by dry, regulatory language, included playful asides, such as acknowledging celebrities like Taylor Swift, Jennifer Aniston, Jennifer Lopez, Kendall Jenner, and Hailey Bieber for wearing the brand. This consistent brand identity, from customer emails to SEC filings, was a deliberate choice, according to Borenstein, who recognized the strength and uniqueness of their approach.
Post-IPO, Reformation has ambitious plans for expansion, intending to double its store count and pursue international growth. This strategic direction suggests a confidence in the brand’s ability to translate its current success into broader market penetration. While recent fashion IPOs, such as Rent the Runway and Allbirds, have faced challenges, Reformation’s distinctive brand voice and strong financial metrics may position it differently. The brand’s ability to maintain a cohesive and authentic identity across all its communications, from consumer-facing marketing to investor relations, offers a compelling case study for other companies navigating public markets. The blend of a modern brand ethos with a clear business strategy appears to be a central component of its recent success.
