Reformation’s Wholesale Growth Outpaces DTC as Store Network Reaches 70

DTC revenue increased 21.2% to $135.3 million, while wholesale and other revenue rose 48.7% to $19.9 million. International sales grew 36.8%, supported partly by the company’s expanding French retail footprint. Wholesale was growing faster, but DTC still supplied most revenue and the larger share of the dollar increase.

That means the expansion remained anchored in Reformation’s own channels rather than becoming dependent on wholesale. “Reformation is beginning its public company journey from a position of strength,” said Hali Borenstein, CEO of Reformation. Net income increased to $12.4 million from $6.9 million.

Gross margin reached 66.7%, helped by lower average tariff rates and higher average selling prices, partially offset by the growing wholesale mix.

Selling through partners can widen distribution, but the disclosed margin pressure shows the trade-off: faster wholesale growth can reduce the share of each sales dollar retained before operating costs. In this quarter, higher prices and tariff relief more than offset that pressure…