{"id":21031,"date":"2026-07-23T00:48:22","date_gmt":"2026-07-22T15:48:22","guid":{"rendered":"https:\/\/tomorrowaccess.com\/?page_id=21031"},"modified":"2026-10-27T14:20:18","modified_gmt":"2026-10-27T05:20:18","slug":"reformation-2026","status":"publish","type":"page","link":"https:\/\/tomorrowaccess.com\/en\/s-1-journal\/reformation-2026","title":{"rendered":"It Paid Out $90 Million. Eight Days Later, It Filed an S-1."},"content":{"rendered":"<style>@import url('https:\/\/fonts.googleapis.com\/css2?family=Newsreader:ital,opsz,wght@0,6..72,400;0,6..72,500;0,6..72,600;1,6..72,400&display=swap');html,body {max-width: 100vw !important;overflow-x: hidden !important;}main,main > .entry-content,main > .wp-block-post-content,main > .wp-block-post-content.is-layout-constrained,main > .wp-block-post-content.is-layout-constrained > *,main .wp-block-group,main .wp-block-post-content {max-width: 100% !important;padding-left: 0 !important;padding-right: 0 !important;margin-left: 0 !important;margin-right: 0 !important;}main#wp--skip-link--target {padding: 0 !important;margin-top: 0 !important;max-width: 100% !important;}.s1-figure-inline {display: block;width: 100%;max-width: 100%;margin: 60px 0;padding: 0;box-sizing: border-box;}.s1-figure-inline picture {display: block;width: 100%;}.s1-figure-inline img {display: block;width: 100%;max-width: 100%;height: auto;margin: 0;}@media (max-width: 720px) {.s1-hero-grid {grid-template-columns: 1fr !important;}.s1-hero-grid > div {border-right: none !important;border-bottom: 1px solid #e6e6e6 !important;padding: 24px 12px !important;}.s1-hero-grid > div:last-child {border-bottom: none !important;}.s1-hero-grid > div > div:first-child {font-size: 32px !important;white-space: normal !important;}.s1-body-table,.s1-body-table tbody,.s1-body-table tr,.s1-body-table td,.s1-body-table th {display: block !important;width: 100% !important;max-width: 100% !important;box-sizing: border-box !important;}.s1-body-table thead {display: none !important;}.s1-body-table tr {margin-bottom: 16px !important;padding: 8px 0 !important;border-top: 1px solid #1a1a1a !important;}.s1-body-table tr:last-child {border-bottom: 1px solid #1a1a1a !important;}.s1-body-table td {text-align: left !important;padding: 6px 8px !important;}.s1-body-table td::before {content: attr(data-label) \": \";font-weight: 700 !important;color: #000 !important;}.s1-body-table td:first-child::before,.s1-body-table td[data-label=\"\"]::before {display: none !important;}.s1-light-shadow {flex-direction: column !important;}.s1-light-shadow > div {border-left: 1px solid #1a1a1a !important;border-top: 0 !important;}.s1-light-shadow > div:first-child {border-top: 1px solid #1a1a1a !important;}h1 {font-size: clamp(26px, 7vw, 34px) !important;}h2 {font-size: clamp(22px, 5.5vw, 28px) !important;}.s1-article-cta-headline {font-size: 24px !important; line-height: 1.4 !important;}}@media (max-width: 480px) {.s1-article-cta-headline {font-size: 20px !important;}}main .wp-block-post-content>.alignfull{margin-left:calc(-1*var(--wp--style--root--padding-left,20px)) !important;margin-right:calc(-1*var(--wp--style--root--padding-right,20px)) !important;max-width:none !important;width:auto !important;}<\/style>\n<div class=\"alignfull\" style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; color: #1a1a1a; overflow-wrap: break-word; text-wrap: pretty; font-size: 16px; -webkit-font-smoothing: antialiased; background: #fafafa; width: 100%;\">\n<div style=\"max-width: 1000px; margin: 0 auto; padding: 80px 20px 0; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif;\">\n  <a href=\"https:\/\/tomorrowaccess.com\/en\/s-1-journal\/\" style=\"text-decoration: none; color: inherit; display: block;\"><\/p>\n<div style=\"text-align: left; margin-bottom: 40px;\">\n<div style=\"width: 100%; height: 5px; background: #1a1a1a;\"><\/div>\n<div style=\"margin-top: 26px; font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 32px; font-weight: 600; color: #1a1a1a; letter-spacing: 0.01em; line-height: 1; margin-bottom: 14px;\">S-1 <span style=\"color: #daa241;\">Journal<\/span><\/div>\n<div style=\"display: flex; align-items: center; flex-wrap: wrap; gap: 14px; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; margin-bottom: 26px;\">\n        <span style=\"font-size: 11px; letter-spacing: 0.18em; color: #1a1a1a; font-weight: 700; text-transform: uppercase;\">The 10 Questions<\/span><br \/>\n        <span style=\"font-size: 11px; color: #ccc;\">|<\/span><br \/>\n        <span style=\"font-size: 12px; letter-spacing: 0.02em; color: #666; font-weight: 400;\">Every S-1, decoded through the same 10 questions.<\/span>\n      <\/div>\n<div style=\"width: 100%; height: 1px; background: #daa241;\"><\/div>\n<\/p><\/div>\n<p>  <\/a>\n<\/div>\n<div style=\"max-width: 720px; margin: 0 auto; padding: 0 20px; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; color: #1a1a1a; overflow-wrap: break-word; text-wrap: pretty;\">\n<div style=\"margin: 0 0 32px 0;\">\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 30px; font-weight: 600; letter-spacing: 0; color: #daa241; margin: 0; line-height: 1.2;\">Reformation<\/p>\n<\/div>\n<h1 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: clamp(32px, 6vw, 46px); font-weight: 600; line-height: 1.2; letter-spacing: -0.01em; color: #000; margin: 0 0 40px 0; text-wrap: pretty;\">It Paid Out $90 Million.<br \/>Eight Days Later, It Filed an S-1.<\/h1>\n<div style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; letter-spacing: 0.03em; color: #888; margin: 0 0 60px 0; border-bottom: 1px solid #e6e6e6; padding-bottom: 16px;\">Source: <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1787117\/000110465926084856\/tm2513004-10_s1.htm\" target=\"_blank\" rel=\"noopener\" style=\"color: #daa241; text-decoration: underline; text-underline-offset: 3px; text-decoration-thickness: 1px;\">Reformation Inc. S-1\/A (filed 2026-07-20) \u2197<\/a><\/div>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">On July 20, 2026, Reformation filed an <span style=\"white-space:nowrap;\">S-1<\/span>\/A with the SEC and disclosed, for the first time, a <strong style=\"font-weight: 700; color: #000;\">price range of <span style=\"white-space:nowrap;\">$15.00<\/span> to <span style=\"white-space:nowrap;\">$17.00<\/span><\/strong> per share. Its listing on the New York Stock Exchange has been approved, under the ticker &ldquo;REF.&rdquo; The company began in Los Angeles in 2009 as a womenswear brand built around sustainability.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">But this prospectus records something that happened <strong style=\"font-weight: 700; color: #000;\">eight days before<\/strong> the original <span style=\"white-space:nowrap;\">S-1<\/span> was filed with the SEC. On June 17, 2026, the company added <span style=\"white-space:nowrap;\">$92<\/span> million to its credit facility and drew the full amount that same day. On or about June 17, it paid a dividend to its shareholders. The dividend the company declared totaled <strong style=\"font-weight: 700; color: #000;\">approximately <span style=\"white-space:nowrap;\">$90<\/span> million<\/strong>.<\/p>\n<\/div>\n<div style=\"max-width: 720px; margin: 80px auto; padding: 0 20px;\">\n<div class=\"s1-hero-grid\" style=\"border-top: 1px solid #1a1a1a; border-bottom: 1px solid #1a1a1a; padding: 50px 0; display: grid; grid-template-columns: repeat(3, 1fr); gap: 0; text-align: center; align-items: start;\">\n<div style=\"padding: 0 12px; border-right: 1px solid #e6e6e6;\">\n<div style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: clamp(28px, 4.5vw, 36px); font-weight: 500; line-height: 1.05; color: #000; letter-spacing: -0.02em; white-space: nowrap;\">$90M<\/div>\n<div style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 10.5px; letter-spacing: 0.2em; color: #daa241; margin-top: 18px; font-weight: 700; text-transform: uppercase;\">DIVIDEND, JUN 17<\/div>\n<div style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 12px; letter-spacing: 0.04em; color: #888; margin-top: 6px; font-weight: 400; line-height: 1.4;\">paid eight days before the S-1<\/div>\n<\/p><\/div>\n<div style=\"padding: 0 12px; border-right: 1px solid #e6e6e6;\">\n<div style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: clamp(28px, 4.5vw, 36px); font-weight: 500; line-height: 1.05; color: #000; letter-spacing: -0.02em; white-space: nowrap;\">8 days<\/div>\n<div style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 10.5px; letter-spacing: 0.2em; color: #daa241; margin-top: 18px; font-weight: 700; text-transform: uppercase;\">DAYS TO FILING<\/div>\n<div style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 12px; letter-spacing: 0.04em; color: #888; margin-top: 6px; font-weight: 400; line-height: 1.4;\">from the dividend to the S-1<\/div>\n<\/p><\/div>\n<div style=\"padding: 0 12px;\">\n<div style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: clamp(28px, 4.5vw, 36px); font-weight: 500; line-height: 1.05; color: #000; letter-spacing: -0.02em; white-space: nowrap;\">over 90%<\/div>\n<div style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 10.5px; letter-spacing: 0.2em; color: #daa241; margin-top: 18px; font-weight: 700; text-transform: uppercase;\">PROCEEDS TO DEBT<\/div>\n<div style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 12px; letter-spacing: 0.04em; color: #888; margin-top: 6px; font-weight: 400; line-height: 1.4;\">of what the company receives<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<div style=\"max-width: 720px; margin: 0 auto; padding: 0 20px; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; color: #1a1a1a; overflow-wrap: break-word; text-wrap: pretty;\">\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 60px 0 1.5em 0;\">Where that money goes is written in the same document. At an assumed price of <span style=\"white-space:nowrap;\">$16.00,<\/span> the company receives about <span style=\"white-space:nowrap;\">$134.5<\/span> million. <strong style=\"font-weight: 700; color: #000;\">More than <span style=\"white-space:nowrap;\">90%<\/span> of it disappears into repaying debt<\/strong>. The <span style=\"white-space:nowrap;\">$92<\/span> million drawn on June 17 is part of that debt. The remainder is used to buy shares and options from the CEO, the COO and certain other employees.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\"><strong style=\"font-weight: 700; color: #000;\">Borrow, pay out, repay with the offering<\/strong>. All three moves are written in the same volume. And four of the securities firms underwriting the deal have affiliates that are lenders of that debt.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.4em 0;\">Ten questions. We lay out only what the S-1 says.<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; letter-spacing: 0.22em; font-weight: 700; color: #daa241; margin: 100px 0 12px 0; text-transform: uppercase;\">Question 1<\/p>\n<h2 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: clamp(26px, 5vw, 32px); font-weight: 600; line-height: 1.25; letter-spacing: -0.005em; color: #000; margin: 0 0 28px 0;\">What is this company, really?<\/h2>\n<div style=\"margin: 0 0 30px 0; padding: 0 0 16px 0; border-bottom: 1px solid #1a1a1a;\">\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 12px; letter-spacing: 0.2em; color: #daa241; font-weight: 700; margin: 0 0 8px 0; text-transform: uppercase;\">Primary source \u00b7 from the S-1<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 15px; line-height: 1.6; color: #1a1a1a; margin: 0;\">Prospectus Summary (p.1+), Business (Sustainability, p.115+) \u2014 from the S-1<\/p>\n<\/div>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">In one line: a womenswear brand built on sustainability.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">It started with dresses and now sells bottoms, tops, sweaters and accessories. A single order runs about <span style=\"white-space:nowrap;\">$315.<\/span><\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The selling is mostly done <span style=\"white-space:nowrap;\">in-house<\/span>. <strong style=\"font-weight: 700; color: #000;\">About <span style=\"white-space:nowrap;\">90%<\/span> of net revenue<\/strong> comes through the company&rsquo;s own website and its own stores. Together these two are called <span style=\"white-space:nowrap;\">direct-to-consumer<\/span>. There are 70 stores, spread across the United States, Canada, the United Kingdom and France.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The brand&rsquo;s billboard is printed on the very first page of the prospectus.<\/p>\n<blockquote style=\"position: relative; margin: 36px 0; padding: 20px 22px 16px 22px; background: #f5f1e6; box-sizing: border-box; max-width: 100%; overflow: hidden;\"><p>\n<span aria-hidden=\"true\" style=\"position: absolute; top: 2px; left: 10px; font-family: Georgia, 'Times New Roman', serif; font-size: 42px; font-weight: 400; color: #daa241; line-height: 1;\">&ldquo;<\/span><\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 17px; font-weight: 400; line-height: 1.65; letter-spacing: 0.02em; color: #1a1a1a; margin: 0 0 10px 0; padding-left: 24px; overflow-wrap: break-word; overflow-wrap: break-word;\">Being naked is the #1 most sustainable option. We&rsquo;re #2.<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 9.5px; font-weight: 700; letter-spacing: 0.16em; color: #daa241; margin: 0; padding-left: 24px; overflow-wrap: anywhere;\">REFORMATION S-1\/A (JULY 2026) &mdash; COVER ART<\/p>\n<\/blockquote>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The mission is &ldquo;sustainable fashion for all.&rdquo; The first line of the company&rsquo;s <span style=\"white-space:nowrap;\">self-introduction<\/span> begins this way: &ldquo;Hi, we&rsquo;re Reformation, the largest sustainable womenswear brand on the planet &mdash; <strong style=\"font-weight: 700; color: #000;\">that we know of, anyways<\/strong>.&rdquo;<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">That last clause is worth not skipping. It is a disclaimer that this is the company&rsquo;s own claim, not a ranking measured and certified by a third party.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Some of it is verified from outside. Products have been carbon neutral since 2015, and the prospectus says the company&rsquo;s climate targets and its <span style=\"white-space:nowrap;\">in-house<\/span> environmental accounting tool undergo <span style=\"white-space:nowrap;\">third-party<\/span> verification each year. <strong style=\"font-weight: 700; color: #000;\">More than <span style=\"white-space:nowrap;\">97%<\/span><\/strong> of the materials it uses are recycled, regenerative, or renewable.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">So is the billboard without a crack? In the Risk Factors of the same document, this appears.<\/p>\n<blockquote style=\"position: relative; margin: 36px 0; padding: 20px 22px 16px 22px; background: #f5f1e6; box-sizing: border-box; max-width: 100%; overflow: hidden;\"><p>\n<span aria-hidden=\"true\" style=\"position: absolute; top: 2px; left: 10px; font-family: Georgia, 'Times New Roman', serif; font-size: 42px; font-weight: 400; color: #daa241; line-height: 1;\">&ldquo;<\/span><\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 17px; font-weight: 400; line-height: 1.65; letter-spacing: 0.02em; color: #1a1a1a; margin: 0 0 10px 0; padding-left: 24px; overflow-wrap: break-word; overflow-wrap: break-word;\">For example, the organization known as People for the Ethical Treatment of Animals chose to label Reformation as &ldquo;<strong style=\"font-weight: 700; color: #000;\">Greenwasher of the Year<\/strong>&rdquo; in 2023 based on the use of <span style=\"white-space:nowrap;\">animal-derived<\/span> materials in some of our products.<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 9.5px; font-weight: 700; letter-spacing: 0.16em; color: #daa241; margin: 0; padding-left: 24px; overflow-wrap: anywhere;\">REFORMATION S-1\/A (JULY 2026) &mdash; RISK FACTORS, P.27+<\/p>\n<\/blockquote>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The company <strong style=\"font-weight: 700; color: #000;\">discloses this criticism itself, as a material risk<\/strong> to its brand and reputation. The page that raises the billboard and the page that records the billboard being struck sit next to each other in one volume.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The language of the billboard and the language of statutory disclosure live in the same volume.<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; letter-spacing: 0.22em; font-weight: 700; color: #daa241; margin: 100px 0 12px 0; text-transform: uppercase;\">Question 2<\/p>\n<h2 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: clamp(26px, 5vw, 32px); font-weight: 600; line-height: 1.25; letter-spacing: -0.005em; color: #000; margin: 0 0 28px 0;\">What does it compete on?<\/h2>\n<div style=\"margin: 0 0 30px 0; padding: 0 0 16px 0; border-bottom: 1px solid #1a1a1a;\">\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 12px; letter-spacing: 0.2em; color: #daa241; font-weight: 700; margin: 0 0 8px 0; text-transform: uppercase;\">Primary source \u00b7 from the S-1<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 15px; line-height: 1.6; color: #1a1a1a; margin: 0;\">Prospectus Summary (Our Competitive Strengths, p.1+), Business (p.115+) \u2014 from the S-1<\/p>\n<\/div>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Do not try to guess the hit. Multiply the one that already hit, fast.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The hard part of the clothing business is that whether something sells is decided after it is made. This company&rsquo;s design is concentrated on reversing that order.<\/p>\n<h3 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 22px; font-weight: 700; line-height: 1.5; color: #000; margin: 30px 0 16px 0; border-left: 4px solid #daa241; padding: 0 0 0 16px;\">A brand that says what it wants to say<\/h3>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The casting is distinctive. The names in the prospectus are the country singer Kacey Musgraves, the actor Pete Davidson, and Monica Lewinsky. There is also a project called &ldquo;The Divorce Collection,&rdquo; made with the divorce attorney Laura Wasser.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">This way of building a voice feeds straight into holding marketing costs down. Marketing has run at <strong style=\"font-weight: 700; color: #000;\">about <span style=\"white-space:nowrap;\">9%<\/span> of net revenue<\/strong> for four straight years. Even so, <strong style=\"font-weight: 700; color: #000;\">about <span style=\"white-space:nowrap;\">75%<\/span><\/strong> of new <span style=\"white-space:nowrap;\">direct-to-consumer<\/span> customers arrived through channels other than paid online advertising.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">In the company&rsquo;s own survey, <span style=\"white-space:nowrap;\">77%<\/span> of customers said Reformation is &ldquo;one of their favorite brands, or their favorite.&rdquo;<\/p>\n<h3 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 22px; font-weight: 700; line-height: 1.5; color: #000; margin: 30px 0 16px 0; border-left: 4px solid #daa241; padding: 0 0 0 16px;\">New designs are only <span style=\"white-space:nowrap;\">10%<\/span> of <span style=\"white-space:nowrap;\">direct-to-consumer<\/span> apparel revenue<\/h3>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">This is the most distinctive part. The prospectus breaks out <span style=\"white-space:nowrap;\">direct-to-consumer<\/span> apparel revenue by how the product was made, in four buckets.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">2025 <span style=\"white-space:nowrap;\">direct-to-consumer<\/span> apparel net revenue, by the company&rsquo;s own classification:<\/p>\n<style>@media (max-width: 720px) {.s1-stat-grid {grid-template-columns: repeat(2, 1fr) !important; gap: 24px 0 !important;}}<\/style>\n<div style=\"max-width: 720px; margin: 60px auto; padding: 0 20px;\">\n<div class=\"s1-stat-grid\" style=\"border-top: 1px solid #1a1a1a; border-bottom: 1px solid #1a1a1a; padding: 40px 0; display: grid; gap: 0; text-align: center; grid-template-columns: repeat(4, 1fr);\">\n<div style=\"padding: 0 8px; border-right: 1px solid #e6e6e6;\">\n<div style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: clamp(24px, 4.0vw, 32px); font-weight: 400; line-height: 1; color: #000; letter-spacing: -0.02em; white-space: nowrap;\">~55%<\/div>\n<div style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 11px; letter-spacing: 0.22em; color: #daa241; margin-top: 14px; font-weight: 700;\">RECUT<\/div>\n<div style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 12px; color: #888; margin-top: 6px; letter-spacing: 0.04em;\">reorders of styles that sold<\/div>\n<\/div>\n<div style=\"padding: 0 8px; border-right: 1px solid #e6e6e6;\">\n<div style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: clamp(24px, 4.0vw, 32px); font-weight: 400; line-height: 1; color: #000; letter-spacing: -0.02em; white-space: nowrap;\">~20%<\/div>\n<div style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 11px; letter-spacing: 0.22em; color: #daa241; margin-top: 14px; font-weight: 700;\">REPLENISHMENT<\/div>\n<div style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 12px; color: #888; margin-top: 6px; letter-spacing: 0.04em;\">always in stock<\/div>\n<\/div>\n<div style=\"padding: 0 8px; border-right: 1px solid #e6e6e6;\">\n<div style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: clamp(24px, 4.0vw, 32px); font-weight: 400; line-height: 1; color: #000; letter-spacing: -0.02em; white-space: nowrap;\">~15%<\/div>\n<div style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 11px; letter-spacing: 0.22em; color: #daa241; margin-top: 14px; font-weight: 700;\">ITERATIVE<\/div>\n<div style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 12px; color: #888; margin-top: 6px; letter-spacing: 0.04em;\">spun off a style that sold<\/div>\n<\/div>\n<div style=\"padding: 0 8px;\">\n<div style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: clamp(24px, 4.0vw, 32px); font-weight: 400; line-height: 1; color: #000; letter-spacing: -0.02em; white-space: nowrap;\">~10%<\/div>\n<div style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 11px; letter-spacing: 0.22em; color: #daa241; margin-top: 14px; font-weight: 700;\">NEW STYLE<\/div>\n<div style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 12px; color: #888; margin-top: 6px; letter-spacing: 0.04em;\">unproven new design<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">So <span style=\"white-space:nowrap;\">90%<\/span> of <span style=\"white-space:nowrap;\">direct-to-consumer<\/span> apparel revenue comes either from a style that already hit or from something derived from it. <strong style=\"font-weight: 700; color: #000;\">Unproven new designs are only <span style=\"white-space:nowrap;\">10%<\/span><\/strong>.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The procedure runs like this. New styles are made in small runs, dropped twice a week on the website and once a week in stores, and watched. Demand is read within hours, and the ones that hit are chased and produced in volume. Small drops also create stockouts &mdash; which, the company explains, becomes its own reason to buy now.<\/p>\n<h3 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 22px; font-weight: 700; line-height: 1.5; color: #000; margin: 30px 0 16px 0; border-left: 4px solid #daa241; padding: 0 0 0 16px;\">A supply chain that turns in 60 days<\/h3>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">This way of making things only works if you can make things fast. Over the past three years, <strong style=\"font-weight: 700; color: #000;\">half of all products arrived at the distribution center within 60 days<\/strong> of being ordered. Narrow it to reorders and just over <span style=\"white-space:nowrap;\">60%<\/span> were produced within 60 days. The prospectus says production lead times in the apparel industry generally can run &ldquo;up to 12 months or longer.&rdquo;<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">What supports the speed is an owned factory and distribution center in Los Angeles, plus a spread of production locations.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">2025 production by location (unit basis):<\/p>\n<ul style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; padding-left: 24px; margin: 0 0 1.5em 0;\">\n<li style=\"margin-bottom: 0.6em;\">Asia <span style=\"white-space:nowrap;\">51%<\/span><\/li>\n<li style=\"margin-bottom: 0.6em;\">North America <span style=\"white-space:nowrap;\">34%<\/span> (including the owned factory)<\/li>\n<li style=\"margin-bottom: 0.6em;\">Europe <span style=\"white-space:nowrap;\">10%<\/span><\/li>\n<li style=\"margin-bottom: 0.6em;\">South America <span style=\"white-space:nowrap;\">5%<\/span><\/li>\n<\/ul>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">In 2025 the company reorganized production to blunt the impact of tariffs, and the prospectus says it &ldquo;reduced concentration in any one country, China, by <span style=\"white-space:nowrap;\">19%<\/span>.&rdquo; Even so, China still accounts for <strong style=\"font-weight: 700; color: #000;\">about <span style=\"white-space:nowrap;\">32%<\/span><\/strong>.<\/p>\n<h3 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 22px; font-weight: 700; line-height: 1.5; color: #000; margin: 30px 0 16px 0; border-left: 4px solid #daa241; padding: 0 0 0 16px;\">One of each product on the floor<\/h3>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The store design is unusual too. It is a system the company calls Retail X&trade;, introduced in 2017 and now in three quarters of its stores.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\"><strong style=\"font-weight: 700; color: #000;\">Each product is displayed one at a time<\/strong> on the floor. Customers assemble a fitting room digitally, using a touchscreen or a QR code on the item, and staff restock from the back through a patented <span style=\"white-space:nowrap;\">two-way<\/span> closet. Customers never hunt for their size.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Stores with this system saw order values about <span style=\"white-space:nowrap;\">8.5%<\/span> higher than stores without it, and higher conversion as well.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The design is not to guess the hit, but to multiply the one that hit, fast.<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; letter-spacing: 0.22em; font-weight: 700; color: #daa241; margin: 100px 0 12px 0; text-transform: uppercase;\">Question 3<\/p>\n<h2 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: clamp(26px, 5vw, 32px); font-weight: 600; line-height: 1.25; letter-spacing: -0.005em; color: #000; margin: 0 0 28px 0;\">How big is the market?<\/h2>\n<div style=\"margin: 0 0 30px 0; padding: 0 0 16px 0; border-bottom: 1px solid #1a1a1a;\">\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 12px; letter-spacing: 0.2em; color: #daa241; font-weight: 700; margin: 0 0 8px 0; text-transform: uppercase;\">Primary source \u00b7 from the S-1<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 15px; line-height: 1.6; color: #1a1a1a; margin: 0;\">Prospectus Summary (Growth Strategies, p.1+), Business (p.115+) \u2014 from the S-1<\/p>\n<\/div>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\"><strong style=\"font-weight: 700; color: #000;\">Not one dollar figure<\/strong> for market size appears in this prospectus.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Companies going public usually write that their market is worth some number of trillions. That is absent here. What is offered instead is only a denominator and a numerator.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">There are about 854,000 U.S. customers. The company sizes U.S. women aged 18 to 60 at about 94 million and writes that its penetration is &ldquo;<strong style=\"font-weight: 700; color: #000;\">less than <span style=\"white-space:nowrap;\">1%<\/span><\/strong>.&rdquo; It is a way of writing that shows not the size of the market but the smallness of the company.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The industry position is dispatched in a single phrase &mdash; &ldquo;highly fragmented&rdquo; &mdash; and competitors are described only by format. Department stores, specialty retail, independent brands, vintage shops, resale, online marketplaces. There is <strong style=\"font-weight: 700; color: #000;\">no list of named competitors<\/strong>.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The tailwind it cites is rising demand for sustainable fashion. The numbers behind that claim are the other thing worth reading in this chapter.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The numbers the prospectus uses to back its brand value (all from its own July 2025 customer survey):<\/p>\n<ul style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; padding-left: 24px; margin: 0 0 1.5em 0;\">\n<li style=\"margin-bottom: 0.6em;\"><span style=\"white-space:nowrap;\">73%<\/span> of customers appreciate the company&rsquo;s commitment to sustainability<\/li>\n<li style=\"margin-bottom: 0.6em;\">Customers who cite it as an important value spend about <span style=\"white-space:nowrap;\">39%<\/span> more<\/li>\n<li style=\"margin-bottom: 0.6em;\">About <span style=\"white-space:nowrap;\">82%<\/span> of EU customers say they would pay more for apparel made using sustainable practices<\/li>\n<\/ul>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">What matters is the source. These are all <strong style=\"font-weight: 700; color: #000;\">answers the company collected from its own customers<\/strong>. There is also a study of wear occasions, but that one rests on a report from an outside consulting firm the company commissioned. Neither is the same kind of certainty as audited revenue or profit.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">That demand tracks the economy is something the company writes itself. The first item in the Risk Factors is discretionary spending, and the body of it opens this way: &ldquo;Our products may be considered <strong style=\"font-weight: 700; color: #000;\">discretionary items<\/strong> for consumers.&rdquo;<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The evidence is in its own record. Net revenue fell year over year from 2019 to 2020. In the disclosed history going back to 2015, that is the only decline. That same 2020 was also the only year since 2018 with a net loss. The prospectus attributes it to <span style=\"white-space:nowrap;\">COVID-19<\/span>.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">A prospectus that shows not the size of the market, but the small number of its customers.<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; letter-spacing: 0.22em; font-weight: 700; color: #daa241; margin: 100px 0 12px 0; text-transform: uppercase;\">Question 4<\/p>\n<h2 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: clamp(26px, 5vw, 32px); font-weight: 600; line-height: 1.25; letter-spacing: -0.005em; color: #000; margin: 0 0 28px 0;\">Who actually uses it?<\/h2>\n<div style=\"margin: 0 0 30px 0; padding: 0 0 16px 0; border-bottom: 1px solid #1a1a1a;\">\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 12px; letter-spacing: 0.2em; color: #daa241; font-weight: 700; margin: 0 0 8px 0; text-transform: uppercase;\">Primary source \u00b7 from the S-1<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 15px; line-height: 1.6; color: #1a1a1a; margin: 0;\">Prospectus Summary (Our Competitive Strengths, p.1+), MD&amp;A (Key Operating Metrics, p.83+) \u2014 from the S-1<\/p>\n<\/div>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\"><span style=\"white-space:nowrap;\">70%<\/span> of direct revenue is generated by people who started buying before last year.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">An &ldquo;active customer,&rdquo; as the company counts them, is someone who has made at least one purchase in the preceding 12 months. That count is up about <span style=\"white-space:nowrap;\">30%<\/span> in three years and has now <strong style=\"font-weight: 700; color: #000;\">passed one million<\/strong>.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">What draws the eye is the mix, not the growth. <strong style=\"font-weight: 700; color: #000;\">About <span style=\"white-space:nowrap;\">70%<\/span><\/strong> of direct revenue comes from people who first bought in a prior year. That share is <strong style=\"font-weight: 700; color: #000;\">up 21 points<\/strong> from 2021.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The prospectus also breaks customers out by the year they were acquired. Revenue from customers acquired in prior years held at <span style=\"white-space:nowrap;\">80%<\/span> of the year before. Narrow it to those acquired in 2023 or earlier and it is <span style=\"white-space:nowrap;\">98%<\/span>.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">New customers buy a little more than once a year; customers from prior years <strong style=\"font-weight: 700; color: #000;\">buy 2.6 times<\/strong>. About <span style=\"white-space:nowrap;\">20%<\/span> of the cohort that first bought in 2015 is still buying nearly a decade on.<\/p>\n<h3 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 22px; font-weight: 700; line-height: 1.5; color: #000; margin: 30px 0 16px 0; border-left: 4px solid #daa241; padding: 0 0 0 16px;\">Who is buying<\/h3>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The customer picture is disclosed in detail too. More than <span style=\"white-space:nowrap;\">70%<\/span> are between 25 and 50, and newer customers are spreading outward, under 25 and over 50. About <span style=\"white-space:nowrap;\">67%<\/span> have household income above <span style=\"white-space:nowrap;\">$100,000.<\/span><\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Geography is not lopsided either. One in five is outside the United States, and within the U.S. there are more customers outside the coasts than on them. The prospectus makes a point of saying this is not a <span style=\"white-space:nowrap;\">coastal-only<\/span> phenomenon.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The way people buy is widening as well. About <span style=\"white-space:nowrap;\">74%<\/span> of direct revenue came from customers who bought across multiple categories. Nearly <span style=\"white-space:nowrap;\">80%<\/span> of repeat purchases include multiple categories, and close to <span style=\"white-space:nowrap;\">70%<\/span> include a category different from the first purchase.<\/p>\n<h3 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 22px; font-weight: 700; line-height: 1.5; color: #000; margin: 30px 0 16px 0; border-left: 4px solid #daa241; padding: 0 0 0 16px;\">In wholesale, there is concentration in one account<\/h3>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">There is a second kind of customer: retailers who buy the product to sell it. The company has 15 wholesale accounts and 142 doors, <span style=\"white-space:nowrap;\">80%<\/span> of them in the United States.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">This wholesale channel carries concentration. A note to the financial statements says one customer accounted for <strong style=\"font-weight: 700; color: #000;\"><span style=\"white-space:nowrap;\">23%<\/span> of consolidated accounts receivable<\/strong>. The prior year it was <span style=\"white-space:nowrap;\">15%<\/span>.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Wholesale is only about <span style=\"white-space:nowrap;\">10%<\/span> of total revenue, but nearly a quarter of the receivables waiting to be collected leans on a single account.<\/p>\n<div style=\"margin: 30px 0;\">\n<table class=\"s1-body-table\" style=\"width: 100%; table-layout: fixed; border-collapse: collapse; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 15px; font-variant-numeric: tabular-nums;\">\n<colgroup>\n<col style=\"width:30%;\">\n<col style=\"width:17%;\">\n<col style=\"width:17%;\">\n<col style=\"width:17%;\">\n<col style=\"width:19%;\"><\/colgroup>\n<thead>\n<tr style=\"border-top: 2px solid #1a1a1a; border-bottom: 1px solid #1a1a1a;\">\n<th style=\"padding: 14px 8px; text-align: left; font-weight: 700; color: #000; word-break: break-word;\">Customer metrics<\/th>\n<th style=\"padding: 14px 8px; text-align: right; font-weight: 700; color: #000; word-break: break-word;\">2023<\/th>\n<th style=\"padding: 14px 8px; text-align: right; font-weight: 700; color: #000; word-break: break-word;\">2024<\/th>\n<th style=\"padding: 14px 8px; text-align: right; font-weight: 700; color: #000; word-break: break-word;\">2025<\/th>\n<th style=\"padding: 14px 8px; text-align: right; font-weight: 700; color: #000; word-break: break-word;\">Q1 2026<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Customer metrics\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Active customers<\/td>\n<td data-label=\"2023\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">834,000<\/td>\n<td data-label=\"2024\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">946,000<\/td>\n<td data-label=\"2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">1,083,000<\/td>\n<td data-label=\"Q1 2026\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">1,140,000<\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Customer metrics\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Direct revenue per customer<\/td>\n<td data-label=\"2023\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$390<\/span><\/td>\n<td data-label=\"2024\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$418<\/span><\/td>\n<td data-label=\"2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$422<\/span><\/td>\n<td data-label=\"Q1 2026\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$421<\/span><\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #1a1a1a;\">\n<td data-label=\"Customer metrics\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Stores (period end)<\/td>\n<td data-label=\"2023\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">40<\/td>\n<td data-label=\"2024\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">50<\/td>\n<td data-label=\"2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">64<\/td>\n<td data-label=\"Q1 2026\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">66<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">A company that gets the people it already has to buy again, rather than chasing new ones.<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; letter-spacing: 0.22em; font-weight: 700; color: #daa241; margin: 100px 0 12px 0; text-transform: uppercase;\">Question 5<\/p>\n<h2 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: clamp(26px, 5vw, 32px); font-weight: 600; line-height: 1.25; letter-spacing: -0.005em; color: #000; margin: 0 0 28px 0;\">How does it make money?<\/h2>\n<div style=\"margin: 0 0 30px 0; padding: 0 0 16px 0; border-bottom: 1px solid #1a1a1a;\">\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 12px; letter-spacing: 0.2em; color: #daa241; font-weight: 700; margin: 0 0 8px 0; text-transform: uppercase;\">Primary source \u00b7 from the S-1<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 15px; line-height: 1.6; color: #1a1a1a; margin: 0;\">MD&amp;A (Results of Operations, p.83+), Business (p.115+) \u2014 from the S-1<\/p>\n<\/div>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Make the clothes, sell most of them at full price, and sell them yourself.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">How it earns is plain. What is complicated is the selling; the revenue sources themselves are easy to follow.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\"><span style=\"white-space:nowrap;\">90%<\/span> of net revenue is direct, the rest wholesale and other. Within direct, <strong style=\"font-weight: 700; color: #000;\">the website accounts for two thirds<\/strong>.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The prospectus also stresses a structure that does not lean on discounting. From 2021 through 2025, consistently, <strong style=\"font-weight: 700; color: #000;\">about <span style=\"white-space:nowrap;\">80%<\/span> of direct revenue was sold at full price<\/strong>. The explanation is that small drops and reorders reduce leftover inventory.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The economics of each selling surface (2025):<\/p>\n<style>@media (max-width: 720px) {.s1-cards-grid {grid-template-columns: 1fr !important; grid-template-rows: none !important; row-gap: 20px !important;}.s1-card {display: block !important;}}<\/style>\n<div class=\"s1-cards-grid\" style=\"margin: 40px 0; display: grid; gap: 20px;grid-template-columns: repeat(3, 1fr); grid-template-rows: auto auto auto; row-gap: 0;\">\n<div class=\"s1-card\" style=\"padding: 24px 24px; background: #ffffff; border: 1px solid #e6e6e6; border-top: 3px solid #daa241; min-width: 0; box-sizing: border-box; display: grid; grid-template-rows: subgrid; grid-row: span 3;\">\n<div style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 18px; font-weight: 700; line-height: 1.4; color: #1a1a1a; margin: 0 0 14px 0; padding: 0 0 10px 0; border-bottom: 1px solid #e6e6e6;\">Website<br \/>(e-commerce)<\/div>\n<div class=\"s1-card-data\">\n<div style=\"padding: 10px 0; line-height: 1.5;\"><span style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 10px; color: #daa241; font-weight: 700; letter-spacing: 0.22em; display: block; margin-bottom: 4px;\">Share of direct<\/span><span style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 15px; color: #1a1a1a; font-weight: 400; display: block; word-break: normal; overflow-wrap: anywhere; line-height: 1.55;\"><span style=\"white-space:nowrap;\">67%<\/span><\/span><\/div>\n<div style=\"padding: 10px 0; line-height: 1.5;\"><span style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 10px; color: #daa241; font-weight: 700; letter-spacing: 0.22em; display: block; margin-bottom: 4px;\">New product drops<\/span><span style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 15px; color: #1a1a1a; font-weight: 400; display: block; word-break: normal; overflow-wrap: anywhere; line-height: 1.55;\">twice a week<\/span><\/div>\n<div style=\"padding: 10px 0; line-height: 1.5;\"><span style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 10px; color: #daa241; font-weight: 700; letter-spacing: 0.22em; display: block; margin-bottom: 4px;\"><\/span><span style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 15px; color: #1a1a1a; font-weight: 400; display: block; word-break: normal; overflow-wrap: anywhere; line-height: 1.55;\"><\/span><\/div>\n<div style=\"padding: 10px 0; line-height: 1.5;\"><span style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 10px; color: #daa241; font-weight: 700; letter-spacing: 0.22em; display: block; margin-bottom: 4px;\">Demand read<\/span><span style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 15px; color: #1a1a1a; font-weight: 400; display: block; word-break: normal; overflow-wrap: anywhere; line-height: 1.55;\">within hours<\/span><\/div>\n<\/div>\n<div style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 12px; line-height: 1.5; letter-spacing: 0; color: #666; margin: 14px 0 0 0; padding: 12px 0 0 0; border-top: 1px solid #f0f0f0; overflow-wrap: break-word; overflow-wrap: anywhere; text-wrap: pretty;\">Put it out in small runs,<br \/>watch, and chase only<br \/>the styles that hit.<\/div>\n<\/div>\n<div class=\"s1-card\" style=\"padding: 24px 24px; background: #ffffff; border: 1px solid #e6e6e6; border-top: 3px solid #daa241; min-width: 0; box-sizing: border-box; display: grid; grid-template-rows: subgrid; grid-row: span 3;\">\n<div style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 18px; font-weight: 700; line-height: 1.4; color: #1a1a1a; margin: 0 0 14px 0; padding: 0 0 10px 0; border-bottom: 1px solid #e6e6e6;\">Owned stores<br \/>(physical retail)<\/div>\n<div class=\"s1-card-data\">\n<div style=\"padding: 10px 0; line-height: 1.5;\"><span style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 10px; color: #daa241; font-weight: 700; letter-spacing: 0.22em; display: block; margin-bottom: 4px;\">Stores<\/span><span style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 15px; color: #1a1a1a; font-weight: 400; display: block; word-break: normal; overflow-wrap: anywhere; line-height: 1.55;\">70 in 4 countries<\/span><\/div>\n<div style=\"padding: 10px 0; line-height: 1.5;\"><span style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 10px; color: #daa241; font-weight: 700; letter-spacing: 0.22em; display: block; margin-bottom: 4px;\">Net revenue per store<\/span><span style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 15px; color: #1a1a1a; font-weight: 400; display: block; word-break: normal; overflow-wrap: anywhere; line-height: 1.55;\"><span style=\"white-space:nowrap;\">$2.7M<\/span> (47 <span style=\"white-space:nowrap;\">full-year<\/span> stores)<\/span><\/div>\n<div style=\"padding: 10px 0; line-height: 1.5;\"><span style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 10px; color: #daa241; font-weight: 700; letter-spacing: 0.22em; display: block; margin-bottom: 4px;\">Payback<\/span><span style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 15px; color: #1a1a1a; font-weight: 400; display: block; word-break: normal; overflow-wrap: anywhere; line-height: 1.55;\">under 24 months on average<\/span><\/div>\n<div style=\"padding: 10px 0; line-height: 1.5;\"><span style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 10px; color: #daa241; font-weight: 700; letter-spacing: 0.22em; display: block; margin-bottom: 4px;\">Retail X&amp;trade; effect<\/span><span style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 15px; color: #1a1a1a; font-weight: 400; display: block; word-break: normal; overflow-wrap: anywhere; line-height: 1.55;\">order value +<span style=\"white-space:nowrap;\">8.5%<\/span><br \/>higher conversion too<\/span><\/div>\n<\/div>\n<div style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 12px; line-height: 1.5; letter-spacing: 0; color: #666; margin: 14px 0 0 0; padding: 12px 0 0 0; border-top: 1px solid #f0f0f0; overflow-wrap: break-word; overflow-wrap: anywhere; text-wrap: pretty;\">In markets with a new store,<br \/>customer acquisition the<br \/>next year rises up to 6x.<\/div>\n<\/div>\n<div class=\"s1-card\" style=\"padding: 24px 24px; background: #ffffff; border: 1px solid #e6e6e6; border-top: 3px solid #daa241; min-width: 0; box-sizing: border-box; display: grid; grid-template-rows: subgrid; grid-row: span 3;\">\n<div style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 18px; font-weight: 700; line-height: 1.4; color: #1a1a1a; margin: 0 0 14px 0; padding: 0 0 10px 0; border-bottom: 1px solid #e6e6e6;\">Wholesale<br \/>(other retailers&rsquo; floors)<\/div>\n<div class=\"s1-card-data\">\n<div style=\"padding: 10px 0; line-height: 1.5;\"><span style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 10px; color: #daa241; font-weight: 700; letter-spacing: 0.22em; display: block; margin-bottom: 4px;\">Share of net revenue<\/span><span style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 15px; color: #1a1a1a; font-weight: 400; display: block; word-break: normal; overflow-wrap: anywhere; line-height: 1.55;\"><span style=\"white-space:nowrap;\">10%<\/span><\/span><\/div>\n<div style=\"padding: 10px 0; line-height: 1.5;\"><span style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 10px; color: #daa241; font-weight: 700; letter-spacing: 0.22em; display: block; margin-bottom: 4px;\">Accounts<\/span><span style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 15px; color: #1a1a1a; font-weight: 400; display: block; word-break: normal; overflow-wrap: anywhere; line-height: 1.55;\">15<\/span><\/div>\n<div style=\"padding: 10px 0; line-height: 1.5;\"><span style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 10px; color: #daa241; font-weight: 700; letter-spacing: 0.22em; display: block; margin-bottom: 4px;\">Doors<\/span><span style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 15px; color: #1a1a1a; font-weight: 400; display: block; word-break: normal; overflow-wrap: anywhere; line-height: 1.55;\">142<\/span><\/div>\n<div style=\"padding: 10px 0; line-height: 1.5;\"><span style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 10px; color: #daa241; font-weight: 700; letter-spacing: 0.22em; display: block; margin-bottom: 4px;\">Concentration<\/span><span style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 15px; color: #1a1a1a; font-weight: 400; display: block; word-break: normal; overflow-wrap: anywhere; line-height: 1.55;\">one account, <span style=\"white-space:nowrap;\">23%<\/span> of receivables<\/span><\/div>\n<\/div>\n<div style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 12px; line-height: 1.5; letter-spacing: 0; color: #666; margin: 14px 0 0 0; padding: 12px 0 0 0; border-top: 1px solid #f0f0f0; overflow-wrap: break-word; overflow-wrap: anywhere; text-wrap: pretty;\">Positioned as a route to<br \/>reach new demographics<br \/>and new geographies.<\/div>\n<\/div>\n<\/div>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The relationship between the website and the stores is shown in numbers too. Customers who buy on both generate <strong style=\"font-weight: 700; color: #000;\">3.1 times the revenue<\/strong> of customers who buy on only one. The share of revenue from customers who buy on both rose from <strong style=\"font-weight: 700; color: #000;\"><span style=\"white-space:nowrap;\">19%<\/span> in 2021 to <span style=\"white-space:nowrap;\">34%<\/span> in 2025<\/strong>.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">So a store is not a standalone revenue machine. In markets with a new store, new customer acquisition the following year rose <strong style=\"font-weight: 700; color: #000;\">as much as six times<\/strong>, and the prospectus says more than <span style=\"white-space:nowrap;\">30%<\/span> of new customers were acquired in stores.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">And there is still a lot of white space. Of the 50 largest U.S. metropolitan areas by population, the company says it has stores in only half.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The more stores it opens, the more online customers it gets.<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; letter-spacing: 0.22em; font-weight: 700; color: #daa241; margin: 100px 0 12px 0; text-transform: uppercase;\">Question 6<\/p>\n<h2 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: clamp(26px, 5vw, 32px); font-weight: 600; line-height: 1.25; letter-spacing: -0.005em; color: #000; margin: 0 0 28px 0;\">Are the numbers healthy?<\/h2>\n<div style=\"margin: 0 0 30px 0; padding: 0 0 16px 0; border-bottom: 1px solid #1a1a1a;\">\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 12px; letter-spacing: 0.2em; color: #daa241; font-weight: 700; margin: 0 0 8px 0; text-transform: uppercase;\">Primary source \u00b7 from the S-1<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 15px; line-height: 1.6; color: #1a1a1a; margin: 0;\">MD&amp;A (p.83+) and Capitalization (p.79), Risk Factors (p.27+) and notes to the financial statements \u2014 from the S-1<\/p>\n<\/div>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Line up the numbers and two things look odd.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The surface looks good. Net revenue is up more than <span style=\"white-space:nowrap;\">40%<\/span> in three years, and the first quarter of 2026 was up <span style=\"white-space:nowrap;\">30.4%<\/span> year over year. That makes <strong style=\"font-weight: 700; color: #000;\">20 straight quarters<\/strong> of <span style=\"white-space:nowrap;\">double-digit<\/span> growth.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">But follow the lines below it and the story changes.<\/p>\n<h3 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 22px; font-weight: 700; line-height: 1.5; color: #000; margin: 30px 0 16px 0; border-left: 4px solid #daa241; padding: 0 0 0 16px;\">Oddity 1: revenue grew, and net income fell <span style=\"white-space:nowrap;\">60%<\/span><\/h3>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Net income in 2025 <strong style=\"font-weight: 700; color: #000;\">fell <span style=\"white-space:nowrap;\">61.6%<\/span><\/strong> from the prior year. Revenue grew <span style=\"white-space:nowrap;\">15.7%<\/span> over the same stretch.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Follow the table and the order becomes visible. First, cost of revenue grew faster than revenue, and gross margin fell 4.3 points. Tariffs are inside that.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Bigger still is selling, general and administrative expense. It rose <span style=\"white-space:nowrap;\">$40.56<\/span> million and made up <strong style=\"font-weight: 700; color: #000;\"><span style=\"white-space:nowrap;\">87%<\/span> of the increase in operating expenses<\/strong>. Operating income is carved down by those two.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Interest expense rose too. But set against the fall in operating income it is one sixth the size, and not the lead actor. The 2025 decline is, first of all, a story about SG&amp;A and gross margin.<\/p>\n<h3 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 22px; font-weight: 700; line-height: 1.5; color: #000; margin: 30px 0 16px 0; border-left: 4px solid #daa241; padding: 0 0 0 16px;\">Oddity 2: retained earnings, built up over years, vanish in one recapitalization<\/h3>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Retained earnings at the end of March 2026 were <span style=\"white-space:nowrap;\">$70.35<\/span> million. The brand was born in 2009, but the entity now going public was incorporated in 2019, and this balance accumulated after the August 2019 acquisition.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">In the adjacent column of the capitalization table, that number <strong style=\"font-weight: 700; color: #000;\">flips negative<\/strong>. It is the column reflecting the June recapitalization and the stock compensation that vests on listing.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The sequence went like this. Add <span style=\"white-space:nowrap;\">$92<\/span> million to the credit facility and draw it all the same day; push that money up from the subsidiary to the parent; pay shareholders <span style=\"white-space:nowrap;\">$1.63<\/span> per share. On June 16 the company declared a cash dividend of an aggregate amount of approximately <span style=\"white-space:nowrap;\">$90<\/span> million on the outstanding shares of its common stock. Separately from that figure, the aggregate of the dividend and the cash payments made in respect of certain options and restricted stock units is disclosed as about <span style=\"white-space:nowrap;\">$89.6<\/span> million.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The same shape appeared two years earlier. In May 2024 the operating company took out a <span style=\"white-space:nowrap;\">$165<\/span> million term loan, and the company received an equal dividend from the subsidiary and used it to buy back its own shares. Interest expense in 2023 was zero. Using debt to return money to shareholders is now <strong style=\"font-weight: 700; color: #000;\">the second time around<\/strong>.<\/p>\n<h3 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 22px; font-weight: 700; line-height: 1.5; color: #000; margin: 30px 0 16px 0; border-left: 4px solid #daa241; padding: 0 0 0 16px;\">The other three are short<\/h3>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">First, gross margin in the first quarter of 2026 is the highest of the eight quarters disclosed. But business did not suddenly improve. In February 2026 the U.S. Supreme Court held unlawful the tariffs imposed under emergency presidential authority, and what had been paid came back &mdash; so the prospectus writes. Most of the improvement is explained by that refund. And most of what came back corresponds to 2025 revenue.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Second, the net loss in that same quarter more than doubled year over year. The cause is a modification to stock compensation terms, a <span style=\"white-space:nowrap;\">one-time<\/span> charge of <span style=\"white-space:nowrap;\">$23.8<\/span> million. What was modified is taken up in Question 7. The Adjusted EBITDA the company reports alongside adds that charge back, so the same quarter appears profitable.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Third, what the assets consist of. Goodwill and trademarks make up <strong style=\"font-weight: 700; color: #000;\"><span style=\"white-space:nowrap;\">55%<\/span> of total assets<\/strong>. Both were recorded when an investment firm acquired a controlling stake in August 2019, and neither has been written down since. Strip those two out and liabilities exceed assets.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The company also writes about its internal controls itself.<\/p>\n<blockquote style=\"position: relative; margin: 36px 0; padding: 20px 22px 16px 22px; background: #f5f1e6; box-sizing: border-box; max-width: 100%; overflow: hidden;\"><p>\n<span aria-hidden=\"true\" style=\"position: absolute; top: 2px; left: 10px; font-family: Georgia, 'Times New Roman', serif; font-size: 42px; font-weight: 400; color: #daa241; line-height: 1;\">&ldquo;<\/span><\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 17px; font-weight: 400; line-height: 1.65; letter-spacing: 0.02em; color: #1a1a1a; margin: 0 0 10px 0; padding-left: 24px; overflow-wrap: break-word; overflow-wrap: break-word;\">These material weaknesses resulted in immaterial revisions in the Company&rsquo;s previously issued 2024 and 2023 consolidated financial statements.<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 9.5px; font-weight: 700; letter-spacing: 0.16em; color: #daa241; margin: 0; padding-left: 24px; overflow-wrap: anywhere;\">REFORMATION S-1\/A (JULY 2026) &mdash; RISK FACTORS, P.27+<\/p>\n<\/blockquote>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">There are <strong style=\"font-weight: 700; color: #000;\">three kinds of weakness<\/strong>: the control environment, risk assessment procedures, and information system controls. The stated cause is that the company was private before the listing and did not have the structure a public company requires.<\/p>\n<div style=\"margin: 30px 0;\">\n<table class=\"s1-body-table\" style=\"width: 100%; table-layout: fixed; border-collapse: collapse; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 15px; font-variant-numeric: tabular-nums;\">\n<colgroup>\n<col style=\"width:30%;\">\n<col style=\"width:13%;\">\n<col style=\"width:13%;\">\n<col style=\"width:14%;\">\n<col style=\"width:15%;\">\n<col style=\"width:15%;\"><\/colgroup>\n<thead>\n<tr style=\"border-top: 2px solid #1a1a1a; border-bottom: 1px solid #1a1a1a;\">\n<th style=\"padding: 14px 8px; text-align: left; font-weight: 700; color: #000; word-break: break-word;\">Income statement ($K)<\/th>\n<th style=\"padding: 14px 8px; text-align: right; font-weight: 700; color: #000; word-break: break-word;\">2023<\/th>\n<th style=\"padding: 14px 8px; text-align: right; font-weight: 700; color: #000; word-break: break-word;\">2024<\/th>\n<th style=\"padding: 14px 8px; text-align: right; font-weight: 700; color: #000; word-break: break-word;\">2025<\/th>\n<th style=\"padding: 14px 8px; text-align: right; font-weight: 700; color: #000; word-break: break-word;\">Q1 2025<\/th>\n<th style=\"padding: 14px 8px; text-align: right; font-weight: 700; color: #000; word-break: break-word;\">Q1 2026<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Income statement ($K)\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Net revenue<\/td>\n<td data-label=\"2023\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$359,523<\/span><\/td>\n<td data-label=\"2024\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$438,157<\/span><\/td>\n<td data-label=\"2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$507,104<\/span><\/td>\n<td data-label=\"Q1 2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$86,091<\/span><\/td>\n<td data-label=\"Q1 2026\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$112,300<\/span><\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Income statement ($K)\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Gross profit<\/td>\n<td data-label=\"2023\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$230,338<\/span><\/td>\n<td data-label=\"2024\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$282,607<\/span><\/td>\n<td data-label=\"2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$305,487<\/span><\/td>\n<td data-label=\"Q1 2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$51,878<\/span><\/td>\n<td data-label=\"Q1 2026\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$78,997<\/span><\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Income statement ($K)\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Gross margin<\/td>\n<td data-label=\"2023\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">64.1%<\/span><\/td>\n<td data-label=\"2024\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">64.5%<\/span><\/td>\n<td data-label=\"2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">60.2%<\/span><\/td>\n<td data-label=\"Q1 2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">60.3%<\/span><\/td>\n<td data-label=\"Q1 2026\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">70.3%<\/span><\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Income statement ($K)\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Marketing<\/td>\n<td data-label=\"2023\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$33,685<\/span><\/td>\n<td data-label=\"2024\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$38,371<\/span><\/td>\n<td data-label=\"2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$44,532<\/span><\/td>\n<td data-label=\"Q1 2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$8,542<\/span><\/td>\n<td data-label=\"Q1 2026\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$9,453<\/span><\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Income statement ($K)\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">SG&amp;A<\/td>\n<td data-label=\"2023\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$159,076<\/span><\/td>\n<td data-label=\"2024\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$191,579<\/span><\/td>\n<td data-label=\"2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$232,137<\/span><\/td>\n<td data-label=\"Q1 2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$47,243<\/span><\/td>\n<td data-label=\"Q1 2026\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$82,384<\/span><\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Income statement ($K)\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Operating income<\/td>\n<td data-label=\"2023\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$37,577<\/span><\/td>\n<td data-label=\"2024\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$52,657<\/span><\/td>\n<td data-label=\"2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$28,818<\/span><\/td>\n<td data-label=\"Q1 2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">\u2212<span style=\"white-space:nowrap;\">$3,907<\/span><\/td>\n<td data-label=\"Q1 2026\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">\u2212<span style=\"white-space:nowrap;\">$12,840<\/span><\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Income statement ($K)\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Interest expense<\/td>\n<td data-label=\"2023\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$0<\/span><\/td>\n<td data-label=\"2024\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">\u2212<span style=\"white-space:nowrap;\">$10,713<\/span><\/td>\n<td data-label=\"2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">\u2212<span style=\"white-space:nowrap;\">$14,574<\/span><\/td>\n<td data-label=\"Q1 2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">\u2212<span style=\"white-space:nowrap;\">$4,152<\/span><\/td>\n<td data-label=\"Q1 2026\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">\u2212<span style=\"white-space:nowrap;\">$3,271<\/span><\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Income statement ($K)\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Net income<\/td>\n<td data-label=\"2023\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$23,886<\/span><\/td>\n<td data-label=\"2024\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$32,930<\/span><\/td>\n<td data-label=\"2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$12,638<\/span><\/td>\n<td data-label=\"Q1 2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">\u2212<span style=\"white-space:nowrap;\">$5,551<\/span><\/td>\n<td data-label=\"Q1 2026\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">\u2212<span style=\"white-space:nowrap;\">$12,148<\/span><\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Income statement ($K)\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Net margin<\/td>\n<td data-label=\"2023\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">6.6%<\/span><\/td>\n<td data-label=\"2024\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">7.5%<\/span><\/td>\n<td data-label=\"2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">2.5%<\/span><\/td>\n<td data-label=\"Q1 2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">\u2212<span style=\"white-space:nowrap;\">6.4%<\/span><\/td>\n<td data-label=\"Q1 2026\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">\u2212<span style=\"white-space:nowrap;\">10.8%<\/span><\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Income statement ($K)\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Adjusted EBITDA<\/td>\n<td data-label=\"2023\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$49,272<\/span><\/td>\n<td data-label=\"2024\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$67,868<\/span><\/td>\n<td data-label=\"2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$44,996<\/span><\/td>\n<td data-label=\"Q1 2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">\u2212<span style=\"white-space:nowrap;\">$322<\/span><\/td>\n<td data-label=\"Q1 2026\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$15,855<\/span><\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #1a1a1a;\">\n<td data-label=\"Income statement ($K)\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Stock comp (<span style=\"white-space:nowrap;\">add-back<\/span>)<\/td>\n<td data-label=\"2023\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$1,908<\/span><\/td>\n<td data-label=\"2024\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$1,161<\/span><\/td>\n<td data-label=\"2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$1,095<\/span><\/td>\n<td data-label=\"Q1 2025\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$309<\/span><\/td>\n<td data-label=\"Q1 2026\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$24,071<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Operations are turning. The balance sheet, though, is made of the memory of an acquisition.<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; letter-spacing: 0.22em; font-weight: 700; color: #daa241; margin: 100px 0 12px 0; text-transform: uppercase;\">Question 7<\/p>\n<h2 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: clamp(26px, 5vw, 32px); font-weight: 600; line-height: 1.25; letter-spacing: -0.005em; color: #000; margin: 0 0 28px 0;\">Who runs it?<\/h2>\n<div style=\"margin: 0 0 30px 0; padding: 0 0 16px 0; border-bottom: 1px solid #1a1a1a;\">\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 12px; letter-spacing: 0.2em; color: #daa241; font-weight: 700; margin: 0 0 8px 0; text-transform: uppercase;\">Primary source \u00b7 from the S-1<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 15px; line-height: 1.6; color: #1a1a1a; margin: 0;\">Management (p.140+), Executive and Director Compensation (p.147+) and notes to the financial statements \u2014 from the S-1<\/p>\n<\/div>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The founder now owns a different womenswear brand.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">There are three executive officers: Hali Borenstein, Chief Executive Officer and President; Joshua Moore, Chief Financial Officer; and Ivan Tchakarov, Chief Operating Officer.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Borenstein has been at the company <strong style=\"font-weight: 700; color: #000;\">12 years<\/strong>. She came up through merchandising and the President role before becoming CEO. Her total 2025 compensation was about <span style=\"white-space:nowrap;\">$1.67<\/span> million. The company writes that half of its leadership team has been there more than seven years, and that more than half of employees and two thirds of its leaders are women.<\/p>\n<h3 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 22px; font-weight: 700; line-height: 1.5; color: #000; margin: 30px 0 16px 0; border-left: 4px solid #daa241; padding: 0 0 0 16px;\">The founder stepped down as CEO in 2020 and started another brand in 2023<\/h3>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Yael Aflalo founded Reformation in 2009 and served as CEO until June 2020. She remains one of the directors.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">What came next is written down as well. From 2021, a principal at a fund focused on women founders. And in August 2023, she founded <strong style=\"font-weight: 700; color: #000;\">AFLALO, a women&rsquo;s <span style=\"white-space:nowrap;\">ready-to-wear<\/span> company<\/strong>.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The prospectus sets those two facts side by side and then explains Aflalo&rsquo;s qualification as a director as &ldquo;her experience as our CEO, her knowledge of the sustainable fashion industry, and her expertise in <span style=\"white-space:nowrap;\">e-commerce<\/span>, retail and design.&rdquo;<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Note that the <span style=\"white-space:nowrap;\">S-1<\/span> does not name AFLALO as a competitor. A sitting director runs a company in the same women&rsquo;s <span style=\"white-space:nowrap;\">ready-to-wear<\/span> market &mdash; that is the relationship one can read, and no more.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Meanwhile, the reason she stepped down as CEO in 2020 is <strong style=\"font-weight: 700; color: #000;\">written nowhere<\/strong> in this document. That it is not written is the only certain thing here.<\/p>\n<h3 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 22px; font-weight: 700; line-height: 1.5; color: #000; margin: 30px 0 16px 0; border-left: 4px solid #daa241; padding: 0 0 0 16px;\">The vanished &ldquo;1.75x to 2.5x&rdquo;<\/h3>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Executive pay carries another story. A note to the financial statements records the original terms of the <span style=\"white-space:nowrap;\">performance-based<\/span> options.<\/p>\n<blockquote style=\"position: relative; margin: 36px 0; padding: 20px 22px 16px 22px; background: #f5f1e6; box-sizing: border-box; max-width: 100%; overflow: hidden;\"><p>\n<span aria-hidden=\"true\" style=\"position: absolute; top: 2px; left: 10px; font-family: Georgia, 'Times New Roman', serif; font-size: 42px; font-weight: 400; color: #daa241; line-height: 1;\">&ldquo;<\/span><\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 17px; font-weight: 400; line-height: 1.65; letter-spacing: 0.02em; color: #1a1a1a; margin: 0 0 10px 0; padding-left: 24px; overflow-wrap: break-word; overflow-wrap: break-word;\">The Company&rsquo;s <span style=\"white-space:nowrap;\">performance-based<\/span> options were originally set to vest when the Company&rsquo;s controlling shareholder achieves a multiple of invested capital ranging from <strong style=\"font-weight: 700; color: #000;\"><span style=\"white-space:nowrap;\">175%<\/span> to <span style=\"white-space:nowrap;\">250%<\/span><\/strong> of invested capital, based on cash proceeds received by the investor.<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 9.5px; font-weight: 700; letter-spacing: 0.16em; color: #daa241; margin: 0; padding-left: 24px; overflow-wrap: anywhere;\">REFORMATION S-1\/A (JULY 2026) &mdash; NOTES TO FINANCIAL STATEMENTS<\/p>\n<\/blockquote>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">So management&rsquo;s options were tied neither to the company&rsquo;s profit nor to its share price, but to how many times over the controlling shareholder, Permira, recovered the money it put in.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">That condition is gone. On <strong style=\"font-weight: 700; color: #000;\">March 27, 2026<\/strong>, the board removed the market condition and converted the options to vest with the passage of time. The company notes these were options &ldquo;previously deemed improbable of vesting.&rdquo; In accounting terms, this became the main driver of the quarterly loss seen in Question 6.<\/p>\n<h3 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 22px; font-weight: 700; line-height: 1.5; color: #000; margin: 30px 0 16px 0; border-left: 4px solid #daa241; padding: 0 0 0 16px;\">The new yardstick is the share price<\/h3>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">In the same year as the removal, new compensation was prepared to coincide with the listing. The approval on July 9, 2026 has three parts.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The first is a <span style=\"white-space:nowrap;\">one-time<\/span> restricted stock grant, <span style=\"white-space:nowrap;\">$10<\/span> million to Borenstein. In dollar terms this is the largest of the three. The second is an annual equity grant, <span style=\"white-space:nowrap;\">$5<\/span> million to Borenstein.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The third is performance stock, granted to Borenstein alone. It is measured quarterly over five years from grant.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Vesting is set by <strong style=\"font-weight: 700; color: #000;\">how many times the offering price<\/strong> the share price reaches:<\/p>\n<ul style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; padding-left: 24px; margin: 0 0 1.5em 0;\">\n<li style=\"margin-bottom: 0.6em;\">Below 1.75x &mdash; <span style=\"white-space:nowrap;\">0%<\/span><\/li>\n<li style=\"margin-bottom: 0.6em;\">1.75x &mdash; <span style=\"white-space:nowrap;\">25%<\/span> of target<\/li>\n<li style=\"margin-bottom: 0.6em;\">2.00x &mdash; <span style=\"white-space:nowrap;\">50%<\/span><\/li>\n<li style=\"margin-bottom: 0.6em;\">2.25x &mdash; <span style=\"white-space:nowrap;\">75%<\/span><\/li>\n<li style=\"margin-bottom: 0.6em;\">2.50x &mdash; <span style=\"white-space:nowrap;\">100%<\/span><\/li>\n<li style=\"margin-bottom: 0.6em;\">2.75x &mdash; <span style=\"white-space:nowrap;\">150%<\/span><\/li>\n<li style=\"margin-bottom: 0.6em;\">3.00x or above &mdash; <span style=\"white-space:nowrap;\">200%<\/span><\/li>\n<\/ul>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Set the two conditions side by side. The removed condition was &ldquo;<strong style=\"font-weight: 700; color: #000;\"><span style=\"white-space:nowrap;\">175%<\/span> to <span style=\"white-space:nowrap;\">250%<\/span><\/strong> of invested capital&rdquo;; the new one is &ldquo;1.75x to 3.00x the offering price.&rdquo; The starting point of 1.75 and the 2.50 that marks <span style=\"white-space:nowrap;\">100%<\/span> of target overlap. What is being referenced has moved from the controlling shareholder&rsquo;s return multiple to the price in the public market.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">One more thing. Part of the money raised in the offering is used to buy shares and options from Borenstein, Tchakarov and other employees. The company calls this a <strong style=\"font-weight: 700; color: #000;\">Synthetic Secondary<\/strong>.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The yardstick that vanished was the investor&rsquo;s return multiple; the new one is the share price.<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; letter-spacing: 0.22em; font-weight: 700; color: #daa241; margin: 100px 0 12px 0; text-transform: uppercase;\">Question 8<\/p>\n<h2 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: clamp(26px, 5vw, 32px); font-weight: 600; line-height: 1.25; letter-spacing: -0.005em; color: #000; margin: 0 0 28px 0;\">Who controls it?<\/h2>\n<div style=\"margin: 0 0 30px 0; padding: 0 0 16px 0; border-bottom: 1px solid #1a1a1a;\">\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 12px; letter-spacing: 0.2em; color: #daa241; font-weight: 700; margin: 0 0 8px 0; text-transform: uppercase;\">Primary source \u00b7 from the S-1<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 15px; line-height: 1.6; color: #1a1a1a; margin: 0;\">Principal and Selling Stockholders (p.165+), Description of Capital Stock (p.168+) and Related Party Transactions (p.163+) \u2014 from the S-1<\/p>\n<\/div>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\"><strong style=\"font-weight: 700; color: #000;\"><span style=\"white-space:nowrap;\">49.2%<\/span><\/strong> is not <span style=\"white-space:nowrap;\">50%<\/span>. The gap is the point.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">One class of stock is being issued. A <strong style=\"font-weight: 700; color: #000;\">single class, one share one vote<\/strong>; the <span style=\"white-space:nowrap;\">multiple-voting<\/span> structure many tech companies use is not adopted here. Preferred stock is authorized but none is issued. So who holds it?<\/p>\n<h3 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 22px; font-weight: 700; line-height: 1.5; color: #000; margin: 30px 0 16px 0; border-left: 4px solid #daa241; padding: 0 0 0 16px;\">Ownership after the listing<\/h3>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The investment firm Permira holds more than <span style=\"white-space:nowrap;\">60%<\/span> before the listing and comes to <strong style=\"font-weight: 700; color: #000;\"><span style=\"white-space:nowrap;\">49.2%<\/span><\/strong> after this offering. The founder side&rsquo;s Aflalo Family Trust goes to <span style=\"white-space:nowrap;\">19.8%<\/span>. Only those two plus Stripes III, LP are selling into the offering.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Add the numbers up and it becomes visible. After listing, Permira and the Aflalo Family Trust together hold <strong style=\"font-weight: 700; color: #000;\">about <span style=\"white-space:nowrap;\">69%<\/span><\/strong>. Include the <span style=\"white-space:nowrap;\">Aflalo-related<\/span> entities and it is about <span style=\"white-space:nowrap;\">72%<\/span>. Even after the offering, existing shareholders keep <span style=\"white-space:nowrap;\">76.2%<\/span> of shares outstanding, and only a little over <span style=\"white-space:nowrap;\">20%<\/span> newly reaches the market.<\/p>\n<h3 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 22px; font-weight: 700; line-height: 1.5; color: #000; margin: 30px 0 16px 0; border-left: 4px solid #daa241; padding: 0 0 0 16px;\">What <strong style=\"font-weight: 700; color: #000;\"><span style=\"white-space:nowrap;\">49.2%<\/span><\/strong> buys<\/h3>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">This is where <strong style=\"font-weight: 700; color: #000;\"><span style=\"white-space:nowrap;\">49.2%<\/span><\/strong> matters. The prospectus states it plainly: this company is not a &ldquo;controlled company&rdquo; under the governance rules of the New York Stock Exchange.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">A controlled company is one where an individual, a group or another company holds more than <span style=\"white-space:nowrap;\">50%<\/span> of voting power. <strong style=\"font-weight: 700; color: #000;\"><span style=\"white-space:nowrap;\">49.2%<\/span><\/strong> sits below that. Because it does not qualify, the exemptions &mdash; from <span style=\"white-space:nowrap;\">independent-director<\/span> ratios and the like &mdash; are not available to it.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">On the other hand, the certificate of incorporation sets a different threshold. For as long as Permira and the <span style=\"white-space:nowrap !important;\">Aflalo Family Trust<\/span> together hold at least half the voting power, shareholders may <strong style=\"font-weight: 700; color: #000;\">act by written consent<\/strong> without holding a meeting. Their combined roughly <span style=\"white-space:nowrap;\">69%<\/span> sits above that threshold.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The board has eight seats. Four are Permira designees and one is an Aflalo Family Trust designee. The chair is a <span style=\"white-space:nowrap;\">Permira-designated<\/span> director as well.<\/p>\n<h3 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 22px; font-weight: 700; line-height: 1.5; color: #000; margin: 30px 0 16px 0; border-left: 4px solid #daa241; padding: 0 0 0 16px;\">A veto that survives down to <span style=\"white-space:nowrap;\">5%<\/span><\/h3>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">What bites harder than ownership is contract. Under a stockholders agreement entered into at listing, so long as Permira holds <strong style=\"font-weight: 700; color: #000;\">at least <span style=\"white-space:nowrap;\">5%<\/span><\/strong> of shares outstanding, none of the following can be done without its consent.<\/p>\n<ul style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; padding-left: 24px; margin: 0 0 1.5em 0;\">\n<li style=\"margin-bottom: 0.6em;\">Entering into or completing a <span style=\"white-space:nowrap;\">change-of-control<\/span> transaction<\/li>\n<li style=\"margin-bottom: 0.6em;\">Removing, appointing or replacing the CEO<\/li>\n<li style=\"margin-bottom: 0.6em;\">Changing the size of the board<\/li>\n<li style=\"margin-bottom: 0.6em;\">Acquisitions, dispositions or borrowings above <span style=\"white-space:nowrap;\">$100<\/span> million<\/li>\n<li style=\"margin-bottom: 0.6em;\">Making or committing to <strong style=\"font-weight: 700; color: #000;\">capital expenditures above <span style=\"white-space:nowrap;\">$25<\/span> million<\/strong><\/li>\n<li style=\"margin-bottom: 0.6em;\">Amending the certificate of incorporation or bylaws<\/li>\n<\/ul>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The second to last one bites. For a retailer whose plan is to more than double its store count over five years, a <span style=\"white-space:nowrap;\">$25<\/span> million capital expenditure line sits at a height that touches ordinary business.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Board designation rights step down with ownership too, and one seat remains even at <span style=\"white-space:nowrap;\">5%<\/span>. Subject to applicable law and the listing requirements of the NYSE, it can also designate one member each to the audit, compensation and nominating committees.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The Aflalo Family Trust has rights of its own. So long as it holds <strong style=\"font-weight: 700; color: #000;\">at least <span style=\"white-space:nowrap;\">5%<\/span><\/strong>, it may designate <span style=\"white-space:nowrap !important;\">Yael Aflalo<\/span> as a director. The founder of the other brand from the previous chapter keeps a board seat by this provision.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Takeover defenses are built in as well. From the day Permira&rsquo;s stake falls below <span style=\"white-space:nowrap;\">20%<\/span>, the board becomes classified into three staggered terms and directors can be removed only for cause. It does not apply, though, if a majority of the board resolves against it before it takes effect.<\/p>\n<div style=\"margin: 30px 0;\">\n<table class=\"s1-body-table\" style=\"width: 100%; table-layout: fixed; border-collapse: collapse; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 15px; font-variant-numeric: tabular-nums;\">\n<colgroup>\n<col style=\"width:34%;\">\n<col style=\"width:20%;\">\n<col style=\"width:24%;\">\n<col style=\"width:22%;\"><\/colgroup>\n<thead>\n<tr style=\"border-top: 2px solid #1a1a1a; border-bottom: 1px solid #1a1a1a;\">\n<th style=\"padding: 14px 8px; text-align: left; font-weight: 700; color: #000; word-break: break-word;\">Shareholder<\/th>\n<th style=\"padding: 14px 8px; text-align: right; font-weight: 700; color: #000; word-break: break-word;\">Before<\/th>\n<th style=\"padding: 14px 8px; text-align: right; font-weight: 700; color: #000; word-break: break-word;\">Shares sold in this offering<\/th>\n<th style=\"padding: 14px 8px; text-align: right; font-weight: 700; color: #000; word-break: break-word;\">After<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Shareholder\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Permira affiliates<\/td>\n<td data-label=\"Before\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">64.4%<\/span><\/td>\n<td data-label=\"Shares sold in this offering\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">2,987,199<\/td>\n<td data-label=\"After\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">49.2%<\/span><\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Shareholder\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">Aflalo-related<\/span> (incl. Trust)<\/td>\n<td data-label=\"Before\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">30.4%<\/span><\/td>\n<td data-label=\"Shares sold in this offering\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">1,408,659<\/td>\n<td data-label=\"After\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">23.2%<\/span><\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Shareholder\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">of which Aflalo Family Trust<\/td>\n<td data-label=\"Before\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">26.0%<\/span><\/td>\n<td data-label=\"Shares sold in this offering\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">1,204,029<\/td>\n<td data-label=\"After\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">19.8%<\/span><\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Shareholder\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Stripes III, LP<\/td>\n<td data-label=\"Before\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">4.1%<\/span><\/td>\n<td data-label=\"Shares sold in this offering\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">187,821<\/td>\n<td data-label=\"After\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">3.1%<\/span><\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #1a1a1a;\">\n<td data-label=\"Shareholder\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Hali Borenstein (CEO)<\/td>\n<td data-label=\"Before\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">4.2%<\/span><\/td>\n<td data-label=\"Shares sold in this offering\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\">&mdash;<\/td>\n<td data-label=\"After\" style=\"padding: 14px 8px; text-align: right; word-break: break-word; font-variant-numeric: tabular-nums; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">2.4%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">A design that holds the company by contract rather than by votes.<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; letter-spacing: 0.22em; font-weight: 700; color: #daa241; margin: 100px 0 12px 0; text-transform: uppercase;\">Question 9<\/p>\n<h2 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: clamp(26px, 5vw, 32px); font-weight: 600; line-height: 1.25; letter-spacing: -0.005em; color: #000; margin: 0 0 28px 0;\">What is it afraid of?<\/h2>\n<div style=\"margin: 0 0 30px 0; padding: 0 0 16px 0; border-bottom: 1px solid #1a1a1a;\">\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 12px; letter-spacing: 0.2em; color: #daa241; font-weight: 700; margin: 0 0 8px 0; text-transform: uppercase;\">Primary source \u00b7 from the S-1<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 15px; line-height: 1.6; color: #1a1a1a; margin: 0;\">Risk Factors (p.27+) \u2014 from the S-1<\/p>\n<\/div>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Among the risks it wrote itself is the billboard.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Risk Factors begins on page 27. Picking the seven from the summary list that are particular to this company gives the following.<\/p>\n<ul style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; padding-left: 24px; margin: 0 0 1.5em 0;\">\n<li style=\"margin-bottom: 0.6em;\">It depends on consumer discretionary spending (first on the list)<\/li>\n<li style=\"margin-bottom: 0.6em;\">Risks tied to its sustainability efforts and disclosures, and to changing disclosure requirements<\/li>\n<li style=\"margin-bottom: 0.6em;\">Its focus on sustainable, <span style=\"white-space:nowrap;\">high-quality<\/span> materials may <strong style=\"font-weight: 700; color: #000;\">raise cost of revenue<\/strong> and hinder growth<\/li>\n<li style=\"margin-bottom: 0.6em;\">Tariffs, trade restrictions and trade wars may raise product costs<\/li>\n<li style=\"margin-bottom: 0.6em;\">Risks tied to operations and transactions in China<\/li>\n<li style=\"margin-bottom: 0.6em;\">Dependence on suppliers &mdash; the top 10 account for <strong style=\"font-weight: 700; color: #000;\">about <span style=\"white-space:nowrap;\">76%<\/span><\/strong> of production volume<\/li>\n<li style=\"margin-bottom: 0.6em;\">It has identified material weaknesses in internal control, and failure to remediate could impair the accuracy of financial reporting<\/li>\n<\/ul>\n<h3 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 22px; font-weight: 700; line-height: 1.5; color: #000; margin: 30px 0 16px 0; border-left: 4px solid #daa241; padding: 0 0 0 16px;\">A structure where the billboard becomes a cost<\/h3>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The second and third are what separate this company from other apparel brands.<\/p>\n<blockquote style=\"position: relative; margin: 36px 0; padding: 20px 22px 16px 22px; background: #f5f1e6; box-sizing: border-box; max-width: 100%; overflow: hidden;\"><p>\n<span aria-hidden=\"true\" style=\"position: absolute; top: 2px; left: 10px; font-family: Georgia, 'Times New Roman', serif; font-size: 42px; font-weight: 400; color: #daa241; line-height: 1;\">&ldquo;<\/span><\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 17px; font-weight: 400; line-height: 1.65; letter-spacing: 0.02em; color: #1a1a1a; margin: 0 0 10px 0; padding-left: 24px; overflow-wrap: break-word; overflow-wrap: break-word;\">Our focus on using sustainable <span style=\"white-space:nowrap;\">high-quality<\/span> materials and reducing environmental impacts in our manufacturing processes and supply chain practices may increase our cost of revenue and hinder our net revenue growth.<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 9.5px; font-weight: 700; letter-spacing: 0.16em; color: #daa241; margin: 0; padding-left: 24px; overflow-wrap: anywhere;\">REFORMATION S-1\/A (JULY 2026) &mdash; RISK FACTORS, P.27+<\/p>\n<\/blockquote>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The reason is attached. Suppliers able to meet sustainability requirements are generally few, and key suppliers cannot always be replaced without substantial time and cost. For a business that competes on speed, having <strong style=\"font-weight: 700; color: #000;\">few partners to choose from<\/strong> is a weakness.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The May 2023 promise to become a <strong style=\"font-weight: 700; color: #000;\">circular business by 2030<\/strong> is written down as well. The more public the goal, the more failure to meet it rebounds on brand and reputation &mdash; that is the order in which it is explained.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">On supplier misconduct there is a distinctive sentence: because sustainability practices are important to the company&rsquo;s brand and business, such issues could have a <strong style=\"font-weight: 700; color: #000;\">greater adverse effect<\/strong> on it. It is a <span style=\"white-space:nowrap;\">self-awareness<\/span> that the higher the billboard, the longer the fall.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Regulation is coming too. In 2024 Canada and the European Union implemented greenwashing rules, and in the United States Federal Trade Commission guidance may be updated, the prospectus says. <span style=\"white-space:nowrap;\">Forced-labor<\/span> regulation is spreading as well.<\/p>\n<h3 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 22px; font-weight: 700; line-height: 1.5; color: #000; margin: 30px 0 16px 0; border-left: 4px solid #daa241; padding: 0 0 0 16px;\">The tariffs came back, and are coming again<\/h3>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The tariff refund from Question 6 has a sequel. After the Supreme Court held those tariffs unlawful, the President imposed new tariffs under a different statute and signaled an intent to raise rates further, the prospectus says. The Trade Representative also opened new investigations into imports from a number of countries.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">So the refund is not the end; <strong style=\"font-weight: 700; color: #000;\">the basis has simply moved to a different provision<\/strong>. The company writes that there is significant uncertainty in the U.S. market.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Seen from the supply chain, there is little room to run. Production was reorganized in 2025 to reduce reliance on China, and still about <span style=\"white-space:nowrap;\">32%<\/span> is China. Concentration in the top 10 suppliers is <strong style=\"font-weight: 700; color: #000;\">about <span style=\"white-space:nowrap;\">76%<\/span><\/strong>.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">A company where defending the billboard is itself the cost.<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; letter-spacing: 0.22em; font-weight: 700; color: #daa241; margin: 100px 0 12px 0; text-transform: uppercase;\">Question 10<\/p>\n<h2 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: clamp(26px, 5vw, 32px); font-weight: 600; line-height: 1.25; letter-spacing: -0.005em; color: #000; margin: 0 0 28px 0;\">What becomes of the money it raises?<\/h2>\n<div style=\"margin: 0 0 30px 0; padding: 0 0 16px 0; border-bottom: 1px solid #1a1a1a;\">\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 12px; letter-spacing: 0.2em; color: #daa241; font-weight: 700; margin: 0 0 8px 0; text-transform: uppercase;\">Primary source \u00b7 from the S-1<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 15px; line-height: 1.6; color: #1a1a1a; margin: 0;\">Use of Proceeds (p.77+) and Dilution (p.80+), Underwriters (Conflicts of Interest, p.179+) \u2014 from the S-1<\/p>\n<\/div>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 14px; line-height: 1.6; color: #888; letter-spacing: 0.01em; margin: 0 0 1.5em 0; padding: 16px 20px; background: #f5f5f5; border-left: 3px solid #888;\">Note: This analysis draws only on the facts in the S-1. The final IPO price, the listing date, post-listing share performance and trading demand are not in the filing and fall outside its scope.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Of the roughly <span style=\"white-space:nowrap;\">$134.5<\/span> million the company receives, <strong style=\"font-weight: 700; color: #000;\">more than <span style=\"white-space:nowrap;\">90%<\/span> disappears into repaying debt<\/strong>.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The terms of the offering took concrete shape only with the July 20 <span style=\"white-space:nowrap;\">S-1<\/span>\/A. The range is <span style=\"white-space:nowrap;\">$15.00<\/span> to <span style=\"white-space:nowrap;\">$17.00<\/span> per share, midpoint <span style=\"white-space:nowrap;\">$16.00.<\/span> The New York Stock Exchange listing is approved, under the ticker &ldquo;REF.&rdquo;<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">At the midpoint, net proceeds to the company are about <span style=\"white-space:nowrap;\">$134.5<\/span> million. Only two uses are written down. Most of it goes to repaying term loans under the Credit Agreement, and the rest to buying shares and options from the CEO, the COO and other employees.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The term loans being repaid stood at <span style=\"white-space:nowrap;\">$246.7<\/span> million at the end of June 2026. The <span style=\"white-space:nowrap;\">$92<\/span> million drawn on June 17 to fund the dividend is part of that same agreement.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">There is <strong style=\"font-weight: 700; color: #000;\">no statement<\/strong> about using it for new equipment, inventory or stores. The prospectus describes the principal purpose of the offering as increasing capital and financial flexibility and creating a public market for the common stock.<\/p>\n<h3 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 22px; font-weight: 700; line-height: 1.5; color: #000; margin: 30px 0 16px 0; border-left: 4px solid #daa241; padding: 0 0 0 16px;\">The underwriters&rsquo; affiliates are also the lenders<\/h3>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Here another fact starts to bite. Some of the securities firms underwriting the offering have affiliates standing on the side being repaid.<\/p>\n<blockquote style=\"position: relative; margin: 36px 0; padding: 20px 22px 16px 22px; background: #f5f1e6; box-sizing: border-box; max-width: 100%; overflow: hidden;\"><p>\n<span aria-hidden=\"true\" style=\"position: absolute; top: 2px; left: 10px; font-family: Georgia, 'Times New Roman', serif; font-size: 42px; font-weight: 400; color: #daa241; line-height: 1;\">&ldquo;<\/span><\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 17px; font-weight: 400; line-height: 1.65; letter-spacing: 0.02em; color: #1a1a1a; margin: 0 0 10px 0; padding-left: 24px; overflow-wrap: break-word; overflow-wrap: break-word;\">The Conflicted Underwriters are lenders under the Credit Agreement. &hellip; affiliates of the Conflicted Underwriters will receive <span style=\"white-space:nowrap;\">5%<\/span> or more of the net proceeds of this offering due to the repayment of the term loans.<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 9.5px; font-weight: 700; letter-spacing: 0.16em; color: #daa241; margin: 0; padding-left: 24px; overflow-wrap: anywhere;\">REFORMATION S-1\/A (JULY 2026) &mdash; UNDERWRITERS, P.179+<\/p>\n<\/blockquote>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Four of the nine qualify. Affiliates of J.P. Morgan, Morgan Stanley, Citigroup and RBC Capital Markets are lenders under the Credit Agreement.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">This arrangement is a <strong style=\"font-weight: 700; color: #000;\">conflict of interest under FINRA Rule 5121<\/strong>, and the offering requires a qualified independent underwriter. Guggenheim Securities takes that role and, the prospectus says, receives no additional compensation for it.<\/p>\n<h3 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 22px; font-weight: 700; line-height: 1.5; color: #000; margin: 30px 0 16px 0; border-left: 4px solid #daa241; padding: 0 0 0 16px;\">The numbers seen from the buyer&rsquo;s side<\/h3>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The accounting side is disclosed too. For a new shareholder buying at the assumed price of <span style=\"white-space:nowrap;\">$16.00,<\/span> <strong style=\"font-weight: 700; color: #000;\">immediate dilution per share is <span style=\"white-space:nowrap;\">$16.57<\/span><\/strong>.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Here is what that means. Even after reflecting the listing and the use of proceeds, net tangible book value per share &mdash; stripping out goodwill and trademarks &mdash; stays negative. So the immediate dilution exceeds the assumed offering price itself.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">When shares can be sold is set as well. The company, all directors and executive officers, and nearly all existing shareholders have agreed to a <span style=\"white-space:nowrap;\">180-day<\/span> <span style=\"white-space:nowrap;\">lock-up<\/span>. When it lifts, the roughly 45.01 million shares held by existing shareholders become eligible for sale to the extent conditions such as Rule 144 are met. Shares held by affiliates remain subject to <strong style=\"font-weight: 700; color: #000;\">volume and manner limits<\/strong>.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">Management has a separate restriction. For six months after the <span style=\"white-space:nowrap;\">lock-up<\/span> lifts, an employment term bars disposing of more than <span style=\"white-space:nowrap;\">10%<\/span> of holdings per quarter.<\/p>\n<div style=\"margin: 30px 0;\">\n<table class=\"s1-body-table\" style=\"width: 100%; table-layout: fixed; border-collapse: collapse; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 15px; font-variant-numeric: tabular-nums;\">\n<colgroup>\n<col style=\"width:36%;\">\n<col style=\"width:64%;\"><\/colgroup>\n<thead>\n<tr style=\"border-top: 2px solid #1a1a1a; border-bottom: 1px solid #1a1a1a;\">\n<th style=\"padding: 14px 8px; text-align: left; font-weight: 700; color: #000; word-break: break-word;\">Offering terms<\/th>\n<th style=\"padding: 14px 8px; text-align: left; font-weight: 700; color: #000; word-break: break-word;\">Details<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Offering terms\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Exchange \/ ticker<\/td>\n<td data-label=\"Details\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">New York Stock Exchange, &ldquo;REF&rdquo; (listing approved)<\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Offering terms\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Price range (per share)<\/td>\n<td data-label=\"Details\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$15.00<\/span>&ndash;<span style=\"white-space:nowrap;\">$17.00<\/span> (midpoint <span style=\"white-space:nowrap;\">$16.00<\/span>)<\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Offering terms\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Total shares offered<\/td>\n<td data-label=\"Details\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">14,062,500 shares<\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Offering terms\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">of which newly issued<\/td>\n<td data-label=\"Details\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">9,478,821 shares<\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Offering terms\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">of which sold by holders<\/td>\n<td data-label=\"Details\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">4,583,679 shares (Permira, <span style=\"white-space:nowrap;\">Aflalo-related<\/span>, Stripes III)<\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Offering terms\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Option to purchase additional<\/td>\n<td data-label=\"Details\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">2,109,375 shares (all from selling holders, 30 days)<\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Offering terms\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Net proceeds to company (assumed)<\/td>\n<td data-label=\"Details\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$134.5M<\/span><\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Offering terms\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">of which to repay debt<\/td>\n<td data-label=\"Details\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$125.1M<\/span><\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Offering terms\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">of which to buy from insiders<\/td>\n<td data-label=\"Details\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$9.5M<\/span><\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Offering terms\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Immediate dilution per share<\/td>\n<td data-label=\"Details\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">$16.57<\/span><\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #e6e6e6;\">\n<td data-label=\"Offering terms\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\"><span style=\"white-space:nowrap;\">Lock-up<\/span><\/td>\n<td data-label=\"Details\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">180 days. On expiry, 45,013,708 shares become sellable subject to Rule 144 and similar conditions<\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #1a1a1a;\">\n<td data-label=\"Offering terms\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Underwriters<\/td>\n<td data-label=\"Details\" style=\"padding: 14px 8px; text-align: left; word-break: break-word; color: #1a1a1a;\">Nine. Representatives are J.P. Morgan and Morgan Stanley<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">New shareholders&rsquo; money goes first to the debt. Inside that debt is the dividend.<\/p>\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 12px; letter-spacing: 0.25em; font-weight: 700; color: #daa241; margin: 120px 0 12px 0; text-transform: uppercase;\">In closing<\/p>\n<h2 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: clamp(26px, 5vw, 32px); font-weight: 600; line-height: 1.25; letter-spacing: -0.005em; color: #000; margin: 0 0 20px 0;\">Beyond the ten questions<\/h2>\n<div style=\"width: 140px; height: 4px; background: #daa241; margin: 0 0 40px 0;\"><\/div>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">What Reformation sells is not only clothes. It is a name, built over 17 years around one line: being naked is the most sustainable option, and we are second. Net revenue is up more than <span style=\"white-space:nowrap;\">40%<\/span> in three years and customers have passed one million. About <span style=\"white-space:nowrap;\">80%<\/span> of direct revenue is sold at full price, and <span style=\"white-space:nowrap;\">70%<\/span> comes from returning customers. The numbers show the name genuinely sells.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">But the same document also shows the inside of the design that holds the name up. <span style=\"white-space:nowrap;\">90%<\/span> of direct apparel revenue comes from reorders of styles that already hit and their derivatives; unproven new designs are <span style=\"white-space:nowrap;\">10%<\/span>. Goodwill and trademarks recorded when an investment firm bought the company in 2019 make up <span style=\"white-space:nowrap;\">55%<\/span> of total assets. And net income in 2025 fell <span style=\"white-space:nowrap;\">60%<\/span> even as revenue grew.<\/p>\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0 0 1.5em 0;\">The moves leading to the <span style=\"white-space:nowrap;\">S-1<\/span> are written down in sequence. On June 17 it borrowed and paid out; eight days later it filed the original <span style=\"white-space:nowrap;\">S-1<\/span>; and more than <span style=\"white-space:nowrap;\">90%<\/span> of what the offering brings the company goes to repaying term loans that include that borrowing. In March, the &ldquo;investor&rsquo;s return multiple&rdquo; condition came off management&rsquo;s options, and in July compensation vesting at &ldquo;1.75x to 3.00x the offering price&rdquo; was approved. The billboard, the ledger and the pay each run on a different clock.<\/p>\n<\/div>\n<div style=\"max-width: 720px; margin: 80px auto; padding: 0 20px;\">\n<div class=\"s1-light-shadow\" style=\"display: flex; align-items: stretch;\">\n<div style=\"flex: 1 1 0; min-width: 0; box-sizing: border-box; border: 1px solid #1a1a1a; overflow-wrap: break-word; background: #ffffff; display: flex; flex-direction: column;\">\n<div style=\"background: #c4922e; padding: 20px 28px; text-align: center;\">\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 10px; letter-spacing: 0.25em; color: rgba(255,255,255,0.7); font-weight: 700; margin: 0 0 4px 0;\">LIGHT<\/p>\n<h3 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 22px; font-weight: 600; color: #ffffff; margin: 0;\">The bull case<\/h3>\n<\/p><\/div>\n<div style=\"padding: 28px; background: #ffffff; flex: 1;\">\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 16px; line-height: 1.65; color: #1a1a1a; margin: 0; overflow-wrap: break-word;\"><span style=\"display:block; padding-left:1.2em; text-indent:-1.2em; word-break:normal; margin:0 0 0.6em 0;\">&bull;&nbsp;2025 net revenue of <span style=\"white-space:nowrap;\">$507<\/span> million; more than one million customers<\/span><span style=\"display:block; padding-left:1.2em; text-indent:-1.2em; word-break:normal; margin:0 0 0.6em 0;\">&bull;&nbsp;20 straight quarters of <span style=\"white-space:nowrap;\">double-digit<\/span> growth<\/span><span style=\"display:block; padding-left:1.2em; text-indent:-1.2em; word-break:normal; margin:0 0 0.6em 0;\">&bull;&nbsp;About <span style=\"white-space:nowrap;\">80%<\/span> of direct revenue sold at full price; about <span style=\"white-space:nowrap;\">70%<\/span> from returning customers<\/span><span style=\"display:block; padding-left:1.2em; text-indent:-1.2em; word-break:normal; margin:0 0 0.6em 0;\">&bull;&nbsp;A supply chain where half of orders arrive within 60 days<\/span><span style=\"display:block; padding-left:1.2em; text-indent:-1.2em; word-break:normal; margin:0;\">&bull;&nbsp;More than <span style=\"white-space:nowrap;\">97%<\/span> of materials recycled, regenerative, or renewable<\/span><\/p>\n<\/p><\/div>\n<\/p><\/div>\n<div style=\"flex: 1 1 0; min-width: 0; box-sizing: border-box; border: 1px solid #1a1a1a; border-left: 0; overflow-wrap: break-word; background: #ffffff; display: flex; flex-direction: column;\">\n<div style=\"background: #1a1a1a; padding: 20px 28px; text-align: center;\">\n<p style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 10px; letter-spacing: 0.25em; color: rgba(255,255,255,0.5); font-weight: 700; margin: 0 0 4px 0;\">SHADOW<\/p>\n<h3 style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 22px; font-weight: 600; color: #ffffff; margin: 0;\">The bear case<\/h3>\n<\/p><\/div>\n<div style=\"padding: 28px; background: #ffffff; flex: 1;\">\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 16px; line-height: 1.65; color: #1a1a1a; margin: 0; overflow-wrap: break-word;\"><span style=\"display:block; padding-left:1.2em; text-indent:-1.2em; word-break:normal; margin:0 0 0.6em 0;\">&bull;&nbsp;2025 net income down about <span style=\"white-space:nowrap;\">60%<\/span>; Q1 2026 a loss<\/span><span style=\"display:block; padding-left:1.2em; text-indent:-1.2em; word-break:normal; margin:0 0 0.6em 0;\">&bull;&nbsp;About <span style=\"white-space:nowrap;\">$90<\/span> million paid out on borrowed money eight days before the <span style=\"white-space:nowrap;\">S-1<\/span>; retained earnings flip negative<\/span><span style=\"display:block; padding-left:1.2em; text-indent:-1.2em; word-break:normal; margin:0 0 0.6em 0;\">&bull;&nbsp;More than <span style=\"white-space:nowrap;\">90%<\/span> of what the company receives goes to repaying debt; four of the nine underwriters have affiliates that are lenders<\/span><span style=\"display:block; padding-left:1.2em; text-indent:-1.2em; word-break:normal; margin:0 0 0.6em 0;\">&bull;&nbsp;Three kinds of material weakness in internal control; revisions to previously issued statements<\/span><span style=\"display:block; padding-left:1.2em; text-indent:-1.2em; word-break:normal; margin:0;\">&bull;&nbsp;Discloses itself that PETA called it &ldquo;Greenwasher of the Year&rdquo;<\/span><\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<div style=\"max-width: 720px; margin: 0 auto; padding: 0 20px; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; color: #1a1a1a; overflow-wrap: break-word; text-wrap: pretty;\">\n<p style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 20px; line-height: 1.65; letter-spacing: 0; color: #1a1a1a; margin: 0;\">The prospectus writes that the company has proven it can deliver strong results both financially and environmentally. The company explains this offering with sustainability at the center of the brand. In the same document sit a sequence &mdash; borrow, pay out, repay with the offering &mdash; and the dates on which management&rsquo;s yardstick was swapped. At the intersection of those two, Reformation sells stock. New shareholders&rsquo; money goes first to repaying debt. The term loans being repaid include the <span style=\"white-space:nowrap;\">$92<\/span> million drawn eight days earlier to fund the dividend.<\/p>\n<\/div>\n<div style=\"background: #161310; padding: 80px 40px; text-align: center; margin-top: 80px; margin-left: calc(-50vw + 50%); margin-right: calc(-50vw + 50%);\">\n<div class=\"s1-article-cta-headline\" style=\"font-family: 'Newsreader', Georgia, 'Times New Roman', serif; font-size: 32px; font-weight: 400; color: #fafafa; line-height: 1.5; text-wrap: pretty;\">A great company, or a mediocre one?<br \/>That judgment is now in your hands.<\/div>\n<div style=\"width: 240px; height: 4px; background: #daa241; margin: 30px auto 0;\"><\/div><div style=\"max-width: 480px; margin: 36px auto 0; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif;\">\n  <p style=\"font-size: 14.5px; line-height: 1.7; color: #cfcabf; margin: 0 0 18px; text-align: center;\">Get an email whenever we publish a new S-1 analysis.<\/p>\n  <form class=\"s1art-wl\" data-source=\"article-reformation-en\" style=\"display: flex; flex-wrap: wrap; gap: 10px; justify-content: center; margin: 0;\">\n    <input type=\"email\" required placeholder=\"Email address\" style=\"flex: 1 1 240px; font-size: 15px; padding: 13px 15px; border: 1px solid #5a5446; background: #211d18; color: #fff; border-radius: 0;\">\n    <button type=\"submit\" style=\"flex: 0 0 auto; font-size: 14px; font-weight: 700; padding: 13px 28px; background: #daa241; color: #161310; border: 0; border-radius: 0; cursor: pointer;\">Subscribe<\/button>\n  <\/form>\n  <div class=\"s1art-wl-micro\" style=\"margin-top: 13px; font-size: 12px; color: #9a948a; text-align: center;\">Just your email. Free. Unsubscribe anytime.<\/div>\n<\/div>\n<\/div>\n<div style=\"max-width: 720px; margin: 40px auto 0; padding: 0 20px; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif;\">\n<p style=\"font-size: 12px; line-height: 1.7; color: #888; letter-spacing: 0.02em; margin: 0;\">Source: All facts are drawn from Reformation Inc.&#8217;s S-1\/A (accession 0001104659-26-084856, filed 2026-07-20), together with the company&#8217;s IPO roadshow presentation and factsheet where noted.<\/p>\n<\/div>\n<div style=\"max-width: 720px; margin: 16px auto; padding: 0 20px;\"><a href=\"https:\/\/tomorrowaccess.com\/en\/s-1-journal\/\" style=\"font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 16px; font-weight: 700; color: #daa241; text-decoration: none; letter-spacing: 0.02em;\">\u2190 Back to S-1 Journal<\/a><\/div>\n<\/div>\n<p><!--s1ac--><\/p>\n<div class=\"s1-answercheck\">\n<a href=\"https:\/\/tomorrowaccess.com\/en\/s-1-journal\/reformation-q2-2026\/\"><br \/>\n<span>Answer checks for this company<\/span><br \/>\n<span>More customers, lower spend per customer. The first earnings report explains it in the same terms the prospectus had used<\/span><br \/>\n<span>Read the answer check \u2192<\/span><br \/>\n<\/a>\n<\/div>\n<p><!--\/s1ac--><\/p>\n<div class=\"s1-article-footer\" style=\"margin: 16px 0 0; padding: 8px 30px 36px; background: transparent; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; color: #666; line-height: 1.8; text-align: center;\">\n  <div style=\"max-width: 680px; margin: 0 auto;\">\n    <p style=\"margin: 0 0 18px;\">This article is an explainer for informational purposes only. It is not investment advice or a solicitation to invest. Any investment decision is your own responsibility. The facts here are based on each company&rsquo;s S-1 filing but are not guaranteed to be accurate or complete. Please consult the primary filing on <a href=\"https:\/\/www.sec.gov\/cgi-bin\/browse-edgar?action=getcompany&type=S-1&dateb=&owner=include&count=40\" target=\"_blank\" rel=\"noopener\" style=\"color: #daa241; text-decoration: underline; text-underline-offset: 2px;\">SEC EDGAR<\/a>.<\/p>\n    <p style=\"margin: 0;\"><a href=\"https:\/\/tomorrowaccess.com\/en\/s-1-journal#sales-info\" style=\"color: #daa241; text-decoration: underline; text-underline-offset: 3px; font-weight: 700;\">Pricing &amp; terms &rarr;<\/a><\/p>\n  <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>S-1 Journal The 10 Questions | Every S-1, decoded through the same 10 questions. Reformation It Paid Out $90 M [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":24366,"parent":20744,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_yoast_wpseo_focuskw":"Reformation S-1","_yoast_wpseo_title":"Reformation S-1: $90M Paid Out Eight Days Before Filing %%sep%% %%sitename%%","_yoast_wpseo_metadesc":"Reformation, the sustainability-branded womenswear label, posted $507 million of 2025 net revenue. Eight days before it filed its original S-1 it borrowed and paid out about $90 million &mdash; and more than 90% of what the offering brings the company goes straight back to repaying that debt.","_yoast_wpseo_canonical":"","_yoast_wpseo_opengraph-title":"","_yoast_wpseo_opengraph-description":"","_yoast_wpseo_twitter-title":"","_yoast_wpseo_twitter-description":"","_uag_custom_page_level_css":"","eventcal-data-date-start":"","eventcal-data-date-end":"","eventcal-data-url":"","eventcal-data-place":"","eventcal-data-capacity":"","eventcal-data-ticket":"","eventcal-data-report":"","eventcal-data-note":"","mentoring-company":"","mentoring-position":"","mentoring-name":"","mentoring-url":"","mentoring-text-top":"","mentoring-text-01":"","mentoring-text-02":"","mentoring-text-03":"","mentoring-images":"","mentoring-logo":"","expert-pitch-data-thumbnail":"https:\/\/www.youtube.com\/embed\/M7DlaXKYhLw","expert-pitch-data-youtube":"","expert-pitch-data-date":"2022.03.01 TUE 12:00-13:00","expert-pitch-data-name":"Global Brain, Partner US office \u4e00\u5bae \u7fd4\u5e73\u6c0f","expert-pitch-data-excerpt":"\u91d1\u878d\u5e02\u5834\u304c\u5927\u304d\u304f\u5909\u308f\u308d\u3046\u3068\u3057\u3066\u3044\u307e\u3059\u3002 \u3053\u308c\u307e\u3067\u306f\u65e7\u6765\u306e\u9280\u884c\u304c\u307b\u307c\u5168\u3066\u306e\u6a5f\u80fd\u3092\u6301\u3063\u3066\u3044\u307e\u3057\u305f\u304c\u3001\u304a\u91d1\u3092\u8caf\u3081\u308b\u3001\u9001\u91d1\u3059\u308b\u3001\u6c7a\u6e08\u3059\u308b\u3001\u306a\u3069\u306e\u6a5f\u80fd\u304c\u7d30\u5206\u5316\u3057\u3066\u3001\u3055\u307e\u3056\u307e\u306a\u4eba\u304c\u500b\u3005\u306e\u30b5\u30fc\u30d3\u30b9\u3092\u63d0\u4f9b\u3067\u304d\u308b\u6642\u4ee3\u306b\u306a\u308a\u307e\u3057\u305f\u3002 \u3055\u3089\u306bAI\u306e\u6280\u8853\u3084\u81a8\u5927\u306a\u91cf\u3092\u51e6\u7406\u3067\u304d\u308b\u6280\u8853\u3001\u30d6\u30ed\u30c3\u30af\u30c1\u30a7\u30fc\u30f3\u6280\u8853\u306a\u3069\u3082\u6210\u719f\u3057\u3066\u304d\u305f\u3053\u3068\u3082\u3042\u308a\u3001\u305d\u306e\u52d5\u304d\u306f\u52a0\u901f\u3057\u3066\u3044\u307e\u3059\u3002 \u52d5\u304d\u304c\u6fc0\u3057\u3044\u30d5\u30a3\u30f3\u30c6\u30c3\u30af\u306b\u3064\u3044\u3066\u3001\u6295\u8cc7\u304c\u6d3b\u767a\u3067\u3001\u4eca\u5e74\u306f\u30b0\u30ed\u30fc\u30d0\u30eb\u6295\u8cc7\u3068Fintech\u306a\u3069\u306b\u3082\u6ce8\u529b\u3055\u308c\u3066\u3044\u304fGlobal Brain Partner \u4e00\u5bae\u6c0f\u3068\u6700\u65b0\u60c5\u5831\u3092\u304a\u5c4a\u3051\u3057\u307e\u3059\u3002","expert-pitch-data-download-file":"","expert-pitch-data-peatix":"","expert-pitch-data-whitepaper-show":false,"common-label-text":"","_locale":"en_US","_original_post":"https:\/\/tomorrowaccess.com\/?page_id=21030","footnotes":""},"class_list":["post-21031","page","type-page","status-publish","has-post-thumbnail","hentry","en-US"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Reformation S-1: $90M Paid Out Eight Days Before Filing | Tomorrow Access<\/title>\n<meta name=\"description\" content=\"Reformation, the sustainability-branded womenswear label, posted $507 million of 2025 net revenue. Eight days before it filed its original S-1 it borrowed and paid out about $90 million &mdash; and more than 90% of what the offering brings the company goes straight back to repaying that debt.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/tomorrowaccess.com\/en\/s-1-journal\/reformation-2026\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Reformation S-1: $90M Paid Out Eight Days Before Filing | Tomorrow Access\" \/>\n<meta property=\"og:description\" content=\"Reformation, the sustainability-branded womenswear label, posted $507 million of 2025 net revenue. Eight days before it filed its original S-1 it borrowed and paid out about $90 million &mdash; and more than 90% of what the offering brings the company goes straight back to repaying that debt.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/tomorrowaccess.com\/en\/s-1-journal\/reformation-2026\" \/>\n<meta property=\"og:site_name\" content=\"Tomorrow Access\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/TomorrowAccess\" \/>\n<meta property=\"article:modified_time\" content=\"2026-10-27T05:20:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/tomorrowaccess.com\/wp-content\/uploads\/2026\/07\/reformation-en-og-dark.png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/tomorrowaccess.com\/wp-content\/uploads\/2026\/07\/reformation-en-og-dark.png\" \/>\n<meta name=\"twitter:site\" content=\"@TomorrowAccess\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/tomorrowaccess.com\\\/en\\\/s-1-journal\\\/reformation-2026\",\"url\":\"https:\\\/\\\/tomorrowaccess.com\\\/en\\\/s-1-journal\\\/reformation-2026\",\"name\":\"Reformation S-1: $90M Paid Out Eight Days Before Filing | Tomorrow Access\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/tomorrowaccess.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/tomorrowaccess.com\\\/en\\\/s-1-journal\\\/reformation-2026#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/tomorrowaccess.com\\\/en\\\/s-1-journal\\\/reformation-2026#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/tomorrowaccess.com\\\/wp-content\\\/uploads\\\/2026\\\/10\\\/s1-card-reformation-2026-en.jpg\",\"datePublished\":\"2026-07-22T15:48:22+00:00\",\"dateModified\":\"2026-10-27T05:20:18+00:00\",\"description\":\"Reformation, the sustainability-branded womenswear label, posted $507 million of 2025 net revenue. Eight days before it filed its original S-1 it borrowed and paid out about $90 million &mdash; and more than 90% of what the offering brings the company goes straight back to repaying that debt.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/tomorrowaccess.com\\\/en\\\/s-1-journal\\\/reformation-2026#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/tomorrowaccess.com\\\/en\\\/s-1-journal\\\/reformation-2026\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/tomorrowaccess.com\\\/en\\\/s-1-journal\\\/reformation-2026#primaryimage\",\"url\":\"https:\\\/\\\/tomorrowaccess.com\\\/wp-content\\\/uploads\\\/2026\\\/10\\\/s1-card-reformation-2026-en.jpg\",\"contentUrl\":\"https:\\\/\\\/tomorrowaccess.com\\\/wp-content\\\/uploads\\\/2026\\\/10\\\/s1-card-reformation-2026-en.jpg\",\"width\":1536,\"height\":1024,\"caption\":\"S-1\u30b8\u30e3\u30fc\u30ca\u30eb Reformation\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/tomorrowaccess.com\\\/en\\\/s-1-journal\\\/reformation-2026#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"\u30db\u30fc\u30e0\",\"item\":\"https:\\\/\\\/tomorrowaccess.com\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"S-1 Journal \u2014 Every S-1, Explained Through the Same 10 Questions\",\"item\":\"https:\\\/\\\/tomorrowaccess.com\\\/en\\\/s-1-journal\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"It Paid Out $90 Million. Eight Days Later, It Filed an S-1.\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/tomorrowaccess.com\\\/#website\",\"url\":\"https:\\\/\\\/tomorrowaccess.com\\\/\",\"name\":\"Tomorrow Access\",\"description\":\"Tomorrow Access Homepage\",\"publisher\":{\"@id\":\"https:\\\/\\\/tomorrowaccess.com\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/tomorrowaccess.com\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/tomorrowaccess.com\\\/#organization\",\"name\":\"Tomorrow Access\",\"url\":\"https:\\\/\\\/tomorrowaccess.com\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/tomorrowaccess.com\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/tomorrowaccess.com\\\/wp-content\\\/uploads\\\/2022\\\/10\\\/ta-ogp.jpg\",\"contentUrl\":\"https:\\\/\\\/tomorrowaccess.com\\\/wp-content\\\/uploads\\\/2022\\\/10\\\/ta-ogp.jpg\",\"width\":2400,\"height\":1260,\"caption\":\"Tomorrow Access\"},\"image\":{\"@id\":\"https:\\\/\\\/tomorrowaccess.com\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/TomorrowAccess\",\"https:\\\/\\\/x.com\\\/TomorrowAccess\",\"https:\\\/\\\/www.linkedin.com\\\/company\\\/tomorrow-access\",\"https:\\\/\\\/www.youtube.com\\\/channel\\\/UCz2iUaHKT-gK0ijM0_iFDeA\"],\"legalName\":\"Tomorrow Access LLC\",\"alternateName\":[\"\u30c8\u30a5\u30e2\u30ed\u30fc\u30a2\u30af\u30bb\u30b9\",\"Tomorrow Access LLC\"],\"description\":\"Silicon Valley-based consulting firm supporting Japanese companies with U.S. expansion, new business development and corporate venture capital (CVC), and mentoring startups.\",\"foundingDate\":\"2021\",\"slogan\":\"BUILD YOUR OWN PATH\",\"address\":{\"@type\":\"PostalAddress\",\"addressRegion\":\"CA\",\"addressCountry\":\"US\"},\"areaServed\":[{\"@type\":\"Country\",\"name\":\"United States\"},{\"@type\":\"Country\",\"name\":\"Japan\"}],\"knowsLanguage\":[\"ja\",\"en\"],\"knowsAbout\":[\"Silicon Valley\",\"U.S. market entry for Japanese companies\",\"Corporate venture capital (CVC)\",\"New business development\",\"Startup investment\",\"Startup mentoring\"],\"founder\":{\"@id\":\"https:\\\/\\\/tomorrowaccess.com\\\/#\\\/schema\\\/person\\\/ken-sobajima\"},\"contactPoint\":{\"@type\":\"ContactPoint\",\"contactType\":\"sales\",\"url\":\"https:\\\/\\\/tomorrowaccess.com\\\/en\\\/contact\",\"availableLanguage\":[\"ja\",\"en\"]}},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/tomorrowaccess.com\\\/#\\\/schema\\\/person\\\/ken-sobajima\",\"name\":\"Ken Sobajima\",\"alternateName\":\"\u508d\u5cf6 \u5065\u53cb\",\"jobTitle\":\"Founder & CEO\",\"worksFor\":{\"@id\":\"https:\\\/\\\/tomorrowaccess.com\\\/#organization\"},\"description\":\"Founder & CEO of Tomorrow Access. 25 years at a major Japanese telecom, including heading U.S. investments for its corporate venture fund; based in Silicon Valley since 2015.\",\"award\":[\"Global Corporate Venturing Rising Stars 2019\",\"Global Corporate Venturing Top 50 Emerging Leaders 2021\"],\"sameAs\":[\"https:\\\/\\\/www.linkedin.com\\\/in\\\/sobazy\\\/\"],\"knowsLanguage\":[\"ja\",\"en\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Reformation S-1: $90M Paid Out Eight Days Before Filing | Tomorrow Access","description":"Reformation, the sustainability-branded womenswear label, posted $507 million of 2025 net revenue. Eight days before it filed its original S-1 it borrowed and paid out about $90 million &mdash; and more than 90% of what the offering brings the company goes straight back to repaying that debt.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/tomorrowaccess.com\/en\/s-1-journal\/reformation-2026","og_locale":"en_US","og_type":"article","og_title":"Reformation S-1: $90M Paid Out Eight Days Before Filing | Tomorrow Access","og_description":"Reformation, the sustainability-branded womenswear label, posted $507 million of 2025 net revenue. Eight days before it filed its original S-1 it borrowed and paid out about $90 million &mdash; and more than 90% of what the offering brings the company goes straight back to repaying that debt.","og_url":"https:\/\/tomorrowaccess.com\/en\/s-1-journal\/reformation-2026","og_site_name":"Tomorrow Access","article_publisher":"https:\/\/www.facebook.com\/TomorrowAccess","article_modified_time":"2026-10-27T05:20:18+00:00","og_image":[{"url":"https:\/\/tomorrowaccess.com\/wp-content\/uploads\/2026\/07\/reformation-en-og-dark.png","type":"","width":"","height":""}],"twitter_card":"summary_large_image","twitter_image":"https:\/\/tomorrowaccess.com\/wp-content\/uploads\/2026\/07\/reformation-en-og-dark.png","twitter_site":"@TomorrowAccess","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/tomorrowaccess.com\/en\/s-1-journal\/reformation-2026","url":"https:\/\/tomorrowaccess.com\/en\/s-1-journal\/reformation-2026","name":"Reformation S-1: $90M Paid Out Eight Days Before Filing | Tomorrow Access","isPartOf":{"@id":"https:\/\/tomorrowaccess.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/tomorrowaccess.com\/en\/s-1-journal\/reformation-2026#primaryimage"},"image":{"@id":"https:\/\/tomorrowaccess.com\/en\/s-1-journal\/reformation-2026#primaryimage"},"thumbnailUrl":"https:\/\/tomorrowaccess.com\/wp-content\/uploads\/2026\/10\/s1-card-reformation-2026-en.jpg","datePublished":"2026-07-22T15:48:22+00:00","dateModified":"2026-10-27T05:20:18+00:00","description":"Reformation, the sustainability-branded womenswear label, posted $507 million of 2025 net revenue. Eight days before it filed its original S-1 it borrowed and paid out about $90 million &mdash; and more than 90% of what the offering brings the company goes straight back to repaying that debt.","breadcrumb":{"@id":"https:\/\/tomorrowaccess.com\/en\/s-1-journal\/reformation-2026#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/tomorrowaccess.com\/en\/s-1-journal\/reformation-2026"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/tomorrowaccess.com\/en\/s-1-journal\/reformation-2026#primaryimage","url":"https:\/\/tomorrowaccess.com\/wp-content\/uploads\/2026\/10\/s1-card-reformation-2026-en.jpg","contentUrl":"https:\/\/tomorrowaccess.com\/wp-content\/uploads\/2026\/10\/s1-card-reformation-2026-en.jpg","width":1536,"height":1024,"caption":"S-1\u30b8\u30e3\u30fc\u30ca\u30eb Reformation"},{"@type":"BreadcrumbList","@id":"https:\/\/tomorrowaccess.com\/en\/s-1-journal\/reformation-2026#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"\u30db\u30fc\u30e0","item":"https:\/\/tomorrowaccess.com\/en\/"},{"@type":"ListItem","position":2,"name":"S-1 Journal \u2014 Every S-1, Explained Through the Same 10 Questions","item":"https:\/\/tomorrowaccess.com\/en\/s-1-journal"},{"@type":"ListItem","position":3,"name":"It Paid Out $90 Million. Eight Days Later, It Filed an S-1."}]},{"@type":"WebSite","@id":"https:\/\/tomorrowaccess.com\/#website","url":"https:\/\/tomorrowaccess.com\/","name":"Tomorrow Access","description":"Tomorrow Access Homepage","publisher":{"@id":"https:\/\/tomorrowaccess.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/tomorrowaccess.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/tomorrowaccess.com\/#organization","name":"Tomorrow Access","url":"https:\/\/tomorrowaccess.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/tomorrowaccess.com\/#\/schema\/logo\/image\/","url":"https:\/\/tomorrowaccess.com\/wp-content\/uploads\/2022\/10\/ta-ogp.jpg","contentUrl":"https:\/\/tomorrowaccess.com\/wp-content\/uploads\/2022\/10\/ta-ogp.jpg","width":2400,"height":1260,"caption":"Tomorrow Access"},"image":{"@id":"https:\/\/tomorrowaccess.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/TomorrowAccess","https:\/\/x.com\/TomorrowAccess","https:\/\/www.linkedin.com\/company\/tomorrow-access","https:\/\/www.youtube.com\/channel\/UCz2iUaHKT-gK0ijM0_iFDeA"],"legalName":"Tomorrow Access LLC","alternateName":["\u30c8\u30a5\u30e2\u30ed\u30fc\u30a2\u30af\u30bb\u30b9","Tomorrow Access LLC"],"description":"Silicon Valley-based consulting firm supporting Japanese companies with U.S. expansion, new business development and corporate venture capital (CVC), and mentoring startups.","foundingDate":"2021","slogan":"BUILD YOUR OWN PATH","address":{"@type":"PostalAddress","addressRegion":"CA","addressCountry":"US"},"areaServed":[{"@type":"Country","name":"United States"},{"@type":"Country","name":"Japan"}],"knowsLanguage":["ja","en"],"knowsAbout":["Silicon Valley","U.S. market entry for Japanese companies","Corporate venture capital (CVC)","New business development","Startup investment","Startup mentoring"],"founder":{"@id":"https:\/\/tomorrowaccess.com\/#\/schema\/person\/ken-sobajima"},"contactPoint":{"@type":"ContactPoint","contactType":"sales","url":"https:\/\/tomorrowaccess.com\/en\/contact","availableLanguage":["ja","en"]}},{"@type":"Person","@id":"https:\/\/tomorrowaccess.com\/#\/schema\/person\/ken-sobajima","name":"Ken Sobajima","alternateName":"\u508d\u5cf6 \u5065\u53cb","jobTitle":"Founder & CEO","worksFor":{"@id":"https:\/\/tomorrowaccess.com\/#organization"},"description":"Founder & CEO of Tomorrow Access. 25 years at a major Japanese telecom, including heading U.S. investments for its corporate venture fund; based in Silicon Valley since 2015.","award":["Global Corporate Venturing Rising Stars 2019","Global Corporate Venturing Top 50 Emerging Leaders 2021"],"sameAs":["https:\/\/www.linkedin.com\/in\/sobazy\/"],"knowsLanguage":["ja","en"]}]}},"uagb_featured_image_src":{"full":["https:\/\/tomorrowaccess.com\/wp-content\/uploads\/2026\/10\/s1-card-reformation-2026-en.jpg",1536,1024,false],"thumbnail":["https:\/\/tomorrowaccess.com\/wp-content\/uploads\/2026\/10\/s1-card-reformation-2026-en.jpg",150,100,false],"medium":["https:\/\/tomorrowaccess.com\/wp-content\/uploads\/2026\/10\/s1-card-reformation-2026-en.jpg",300,200,false],"medium_large":["https:\/\/tomorrowaccess.com\/wp-content\/uploads\/2026\/10\/s1-card-reformation-2026-en.jpg",768,512,false],"large":["https:\/\/tomorrowaccess.com\/wp-content\/uploads\/2026\/10\/s1-card-reformation-2026-en.jpg",1024,683,false],"1536x1536":["https:\/\/tomorrowaccess.com\/wp-content\/uploads\/2026\/10\/s1-card-reformation-2026-en.jpg",1536,1024,false],"2048x2048":["https:\/\/tomorrowaccess.com\/wp-content\/uploads\/2026\/10\/s1-card-reformation-2026-en.jpg",1536,1024,false]},"uagb_author_info":{"display_name":"Ken","author_link":"https:\/\/tomorrowaccess.com\/news\/author\/ken"},"uagb_comment_info":0,"uagb_excerpt":"S-1 Journal The 10 Questions | Every S-1, decoded throu&hellip;","_links":{"self":[{"href":"https:\/\/tomorrowaccess.com\/wp-json\/wp\/v2\/pages\/21031","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tomorrowaccess.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/tomorrowaccess.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/tomorrowaccess.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/tomorrowaccess.com\/wp-json\/wp\/v2\/comments?post=21031"}],"version-history":[{"count":3,"href":"https:\/\/tomorrowaccess.com\/wp-json\/wp\/v2\/pages\/21031\/revisions"}],"predecessor-version":[{"id":23830,"href":"https:\/\/tomorrowaccess.com\/wp-json\/wp\/v2\/pages\/21031\/revisions\/23830"}],"up":[{"embeddable":true,"href":"https:\/\/tomorrowaccess.com\/wp-json\/wp\/v2\/pages\/20744"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tomorrowaccess.com\/wp-json\/wp\/v2\/media\/24366"}],"wp:attachment":[{"href":"https:\/\/tomorrowaccess.com\/wp-json\/wp\/v2\/media?parent=21031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}