Sustainable fashion retailer Reformation reported a 24.1 per cent rise in net revenue to $155.2m for the second quarter ended June 27, 2026, driven by a strong performance in both direct-to-consumer (DTC) and wholesale channels.
Net income surged by 79.4 per cent to $12.4m, or $0.23 per diluted share, according to the company’s latest earnings release.
DTC revenue increased 21.2 per cent to $135.3m, reflecting a 22.9 per cent rise in active customers, offset partially by a 1.4 per cent dip in revenue per customer.
Wholesale and other revenue jumped 48.7 per cent to $19.9m amid stronger demand from existing wholesale partners. International revenue climbed 36.8 per cent to $31.2m, while US revenue grew by 21.3 per cent to $124m.
Gross margin expanded by 230 basis points to 66.7 per cent, attributed primarily to lower average tariff rates and higher unit retail prices, partially offset by accelerated wholesale growth.
Operating expenses rose by 24.2 per cent to $84.4m, including a 28.8 per cent increase in marketing costs to $14.5m and a 23.3 per cent rise in general and administrative expenses to $70m.
Adjusted EBITDA rose 53.9 per cent to $25.4m, with a margin improvement of 320 basis points to 16.4 per cent. During the quarter, the company opened four new stores, bringing its total to 70 stores globally.
Reformation held $76.6m in cash and equivalents at quarter-end, with inventory increasing to $81.8m from $65m a year earlier.
Looking ahead, Reformation projects fiscal 2026 net revenue between $602m and $606m, an adjusted EBITDA margin of 14 per cent to 14.2 per cent, and capital expenditures of $23m to $27m to support 15 to 16 planned new store openings.
Hali Borenstein, CEO of Reformation said:” This marks our 21st consecutive quarter of double-digit revenue growth, reinforcing our confidence in our ability to deliver against our long-term growth algorithm.
“The consistency of these results reflects the enduring strength of our brand, agile merchandising model, and disciplined execution. We see significant runway ahead and believe we are well positioned to continue delivering strong, profitable growth and to create meaningful long-term value for our shareholders.”
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