Reformation Inc. (California)

The stock is still in a corrective regime, trading below its 200-day moving average of 15.02 after a run that reached 17.26 over the past year. The setup is rebuilding from the lower half of the 52-week range, with 12.83 marking the floor and 15.02 acting as the key trend line to reclaim.

Street coverage opened constructive, with six recent initiations split between Buy/Outperform and one Equal Weight. The target cluster sits in the high teens, with a 18.83 consensus and 19.50 median versus a 16 to 20 range, suggesting upside if execution supports the new ratings.

The next print carries a modest bar: consensus EPS is 0.20, while next-year EPS is modeled at 0.6942. Revenue growth is already running at 30.4%, so shareholders should watch whether that top-line momentum converts into better operating leverage after a -11.03% operating margin.

Recent activity leans to net selling, but the signal is muted by the age and mix of the transactions. The only clear discretionary trade is a 2,565-share director sale in April 2007; the rest are older award, vesting, or group-related entries rather than fresh open-market conviction.

Gross margin is strong at 62.4%, and revenue growth of 30.4% shows the brand is still expanding. Profitability remains uneven, with a -11.03% operating margin and only 1.13% net margin, while free cash flow was $71.2 million in 2025 despite $147.7 million of debt and $65.5 million of cash.

Reformation stands out on brand and gross margin, but it is still converting growth into earnings less efficiently than mature apparel peers. The valuation tone is not cheap: the market is pricing a premium growth story, with analyst targets centered above the current share price.