Reformation Posts Higher Profit, Revenue in First Quarterly Earnings Since IPO

Dow Jones
16 hours ago
 

Reformation logged higher profit and revenue in its first quarter as a publicly traded company, fueled by new customer growth.

The sustainable women's fashion brand on Thursday posted net income of $12.4 million for its three months ended June 27, compared with $6.92 million in last year's comparable period.

Second-quarter earnings of 23 cents a share came in ahead of analyst expectations for 21 cents a share, according to FactSet.

Revenue climbed 24% to $155.2 million, just ahead of Wall Street models for $154.5 million.

Direct-to-consumer sales were up 21% to $135.3 million, primarily driven by a 23% increase in active customers. Wholesale revenue jumped 49% to $19.9 million, which the company attributed to increased demand from existing partners.

"We see significant runway ahead and believe we are well positioned to continue delivering strong, profitable growth," Chief Executive Hali Borenstein said.

For the year, Reformation guided for revenue to be in the range of $602 million to $606 million, topping analyst views for $601.4 million. The company additionally forecast capital expenditures of $23 million to $27 million, largely stemming from its plans for up to 16 new store openings.

Reformation had its public debut on the New York Stock Exchange in July, priced at $15 a share and valued at about $886 million. Shares have fallen since then, ending Thursday's regular session at $13.15 and putting the company's market capitalization at roughly $806.4 million.

Shares ticked up 3.4%, to $13.60, in after-hours trading.

 
 

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