Jim Cramer'dan Reform (REF): "Olduğundan Daha Yüksek Olmalı"

Jim Cramer on Reformation (REF): “It Should Be Higher Than It Is”

Syeda Seirut Javed

Fri, September 18, 2026 at 3:07 PM GMT+3 3 min read

• REF -4.44%

During the lightning round of the September 14 episode of Mad Money, a caller asked if Reformation Inc. (NYSE:REF) remains a strong long-term investment opportunity following its recent initial public offering and earnings report. Jim Cramer replied:

I like this idea. I like this idea very much. What we're going to do, I'm going to go to Ben Stoto when I get back to New York. We're going to open the file on Reformation. The company's doing too well; it should be higher than it is. But I don't want to make a snap judgment because boy, apparel's been so weak lately.

Revenue Expansion and Margin Growth Drive Momentum

Reformation Inc. (NYSE:REF) delivered its second-quarter financial results for fiscal 2026 on September 10, highlighting strong top line growth and improving profitability. Net revenue increased 24.1% year-over-year to reach $155.2 million, marking the 21st consecutive quarter of double-digit growth for the brand. Gross profit margins expanded by 230 basis points to 66.7%, primarily by higher average unit retail prices and lower average tariff rates.

Additionally, net income reached $12.4 million compared to $6.9 million in the same quarter of the prior year, while adjusted EBITDA margins expanded by 320 basis points to 16.4%. Management reaffirmed its full-year outlook, projecting net revenue between $602 million and $606 million along with an adjusted EBITDA margin of 14% to 14.2%.

Managing Sector Headwinds and Wholesale Expansion Pressures

While Reformation Inc. (NYSE:REF) showed its strength in its recent earnings, the broader apparel sector faces constant macroeconomic weakness and shifting consumer spending patterns that weigh on market multiples. Additionally, while wholesale revenue surged 48.7% during the quarter, wholesale distribution channels carry inherently lower profit margins compared to direct-to-consumer sales, creating a margin dilution risk as wholesale partnerships expand.

Hedge Fund Sentiment and Bearish Bets

Because Reformation Inc. (NYSE:REF) completed its initial public offering after the second quarter was already closed, traditional institutional 13F ownership disclosures remain unavailable. The short interest sits at 13.21% of the public float, showing how market participants are positioning themselves as the new stock navigates wider retail pressures.

Cramer's commentary highlights the tension between strong operational execution and a lagging share price in a challenged retail environment. While broader sector weakness keeps sentiment cautious, expanding margins, consistent top line growth, and strong fundamentals provide a solid foundation for long-term investors willing to navigate short-term apparel industry volatility.

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