Reformation reports 24.1% revenue growth in second quarter

Reformation reported strong second-quarter financial results, marked by a 24.1 percent increase in revenue to $155.2 million. This performance represents the company’s 21st consecutive quarter of double-digit growth. Net income for the quarter rose 79.4 percent to $12.4 million, resulting in earnings per share of $0.23, which exceeded the consensus estimate of $0.20.

The company’s direct-to-consumer channel grew 21.2 percent to $135.3 million, supported by a 22.9 percent increase in active customers. The wholesale segment saw a significant jump of 48.7 percent, reaching $19.9 million. Additionally, Reformation expanded its physical footprint by adding four new stores, bringing its global total to 70.

Following the earnings release, several financial institutions issued updated ratings. Citigroup and JPMorgan Chase & Co. both initiated coverage with positive outlooks, setting price targets of $20.00 and $21.00 respectively. Other firms, including Robert W. Baird and Zacks Research, also provided updated ratings as the stock experienced volatility following its July IPO.