Reformation (NYSE:REF) Posts Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Reformation (NYSE:REF) issued its earnings results on Thursday. The company reported $0.23 EPS for the quarter, beating the consensus estimate of $0.20 by $0.03, Zacks reports. The firm had revenue of $155.23 million during the quarter, compared to analyst estimates of $154.61 million. The business’s revenue was up 24.1% on a year-over-year basis.

Here are the key takeaways from Reformation’s conference call:

• Q2 results exceeded IPO expectations: Net revenue rose 24.1% year over year to $155.2 million, while adjusted EBITDA increased 54% to $25.4 million, lifting the margin to 16.4% from 13.2%.
• Reformation’s active customer base grew 23% to 1.2 million, supported by strong new-customer acquisition, healthy retention, and broad-based demand across product categories and geographies. However, DTC revenue per customer declined 1.4% because newer customers initially spend less than established cohorts.
• International and store expansion remain major growth drivers. International revenue increased 36.8%, while the company plans to open 9–10 stores in the second half of 2026, ending the year with 79–80 locations and targeting more than a doubling of its store base over five years.
• Gross margin expanded 230 basis points to 66.7%, helped by lower tariffs, higher average unit retail prices, and strong full-price selling. Management expects further margin expansion in the second half, although wholesale growth carries a mix impact.
• Reformation reaffirmed 2026 revenue guidance of $602 million–$606 million, or roughly 18.6%–19.5% growth, and adjusted EBITDA margin guidance of 14%–14.2%. Fourth-quarter comparisons will be challenging due to last year’s strong holiday performance, while public-company costs, stock-based compensation, and shipping expenses are expected to pressure near-term operating expenses.

Reformation Stock Performance

Shares of NYSE:REF opened at $14.19 on Friday. Reformation has a 12 month low of $12.83 and a 12 month high of $17.26.

Reformation News Roundup

Here are the key news stories impacting Reformation this week:

• Positive Sentiment: Reformation reported second-quarter fiscal 2026 adjusted earnings of $0.23 per share, exceeding the $0.20 consensus estimate. Revenue rose 24.1% year over year to $155.23 million, while net income increased 79.4% and adjusted EBITDA margin expanded 320 basis points to 16.4%. Reformation Announces Second Quarter Fiscal 2026 Results
• Positive Sentiment: The company issued fiscal 2026 revenue guidance of $602 million to $606 million, slightly above the $601.3 million analyst consensus, reinforcing confidence in continued growth. Reformation’s first public quarter delivers double-digit growth and an upbeat outlook
• Positive Sentiment: Management outlined plans to double its store fleet over the next five years, offering a long-term expansion opportunity if the brand can scale its retail footprint while maintaining margins. Reformation charts path to double store fleet in five years
• Positive Sentiment: Royal Bank of Canada reaffirmed an “outperform” rating with an $18 price target, while Guggenheim maintained a “buy” rating and a $20 target. The continued bullish coverage supports investor sentiment.
• Neutral Sentiment: Reformation’s earnings call provided additional detail on its growth strategy and outlook as a newly public company. Execution of the store expansion plan and sustained demand will remain key factors for valuation.
• Negative Sentiment: Short interest climbed 150.2% between August 15 and August 31 to 2.2 million shares, or about 3.7% of shares outstanding. Elevated bearish positioning could create volatility and signals that some investors remain cautious despite the strong results.

Analyst Upgrades and Downgrades

REF has been the subject of several recent research reports. Zacks Research upgraded Reformation to a “hold” rating in a report on Tuesday, August 25th. Telsey Advisory Group started coverage on shares of Reformation in a research report on Monday, August 24th. They issued an “outperform” rating and a $20.00 price target for the company. JPMorgan Chase & Co. started coverage on shares of Reformation in a research note on Monday, August 24th. They set an “overweight” rating and a $21.00 price target for the company. Robert W. Baird initiated coverage on shares of Reformation in a research note on Monday, August 24th. They issued an “outperform” rating and a $19.00 price objective on the stock. Finally, Royal Bank Of Canada reiterated an “outperform” rating and set a $18.00 price objective on shares of Reformation in a report on Friday. Eight investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $19.25.

Insiders Place Their Bets

In other news, Director Yael Aflalo sold 1,204,029 shares of the company’s stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $13.95, for a total value of $16,796,204.55. Following the transaction, the director owned 11,725,803 shares of the company’s stock, valued at approximately $163,574,951.85. This represents a 9.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, major shareholder Scsp Refo sold 2,987,199 shares of the business’s stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $13.95, for a total value of $41,671,426.05. Following the transaction, the insider owned 29,091,749 shares of the company’s stock, valued at approximately $405,829,898.55. The trade was a 9.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 4,401,122 shares of company stock valued at $61,395,652 over the last 90 days.

Reformation Company Profile

Reformation Inc provide sustainable womenswear brand. Reformation Inc is based in LOS ANGELES.