Permira-backed womenswear retailer Reformation valued at $886 million in NYSE debut
REF•Permira ownership and Reformation's business model
Private equity firm Permira, which has long track record of investing in consumer companies, acquired a majority stake in Reformation in 2019. Permira’s portfolio also includes brands such as K-Way and Italian manufacturing hub Gruppo Florence.
Reformation has five core product groups: dresses, bottoms, tops, sweaters and accessories. Its strategy is based on testing new styles in small quantities, launching tests twice a week on its website and once a week in its stores, and then iterating on proven designs, it said in its IPO filing.
It has more than a million active customers across its direct-to-consumer channels, it added.
“A high percentage of returning customers suggests genuine brand loyalty rather than one-time demand. Those customers are generally less expensive to retain, tend to spend more over time, and can make revenue more predictable,” Liu said.
Reformation values at $886.1 million in NYSE debut
Permira-backed womenswear retailer Reformation was valued at $886.1 million after its shares opened flat in their NYSE debut on Thursday.
The Vernon, California-based company's shares opened at $15 apiece, the same as its offer price. The retailer and some of its shareholders had raised $211 million in its IPO on Wednesday.
IPO lands amid a subdued U.S. consumer listing market
The debut comes as the number of U.S. consumer and retail IPOs are at their lowest in a decade, even as the broader IPO market rebounds.
Founded in 2009 as a vintage clothing boutique in Los Angeles, Reformation markets itself as the largest sustainable brand that designs and sells women's apparel and accessories.
