The news: Alo Yoga could be edging closer to an IPO following last month’s sale of its wholesale T-shirt division, Bella+Canvas, per a Reuters report. The divestiture simplifies Alo’s business as well as its pitch to potential investors, clearing the path for a public offering, sale, or other fundraising efforts.

The big picture: While Alo’s owners have been tightlipped about their plans, conditions are highly favorable for an IPO. SpaceX’s record debut and forthcoming public offerings from OpenAI and Anthropic have whipped up investor enthusiasm for new listings—a dynamic that sustainable apparel brand Reformation hopes will work to its advantage as it prepares to go public as early as July, according to The Wall Street Journal.

Despite their focus on different apparel categories, Alo and Reformation have used fairly similar strategies to stay relevant in a competitive industry. Both brands have relied on celebrity endorsements—paid or otherwise—from the likes of Taylor Swift and the Hadid sisters to boost their profile and are rapidly expanding their store fleets worldwide. And both companies are leaning on their premium positioning to attract more affluent consumers and maintain growth in a challenging environment for discretionary retailers. Alo especially appears determined to establish itself as a luxury contender, hiring former Miu Miu and Dior executive Benedetta Petruzzo to lead its international business and launching a line of high-end handbags.

Those approaches are aiding growth. Reformation is on track to generate over $500 million in revenues this year, sources told The Journal, while Alo is estimated to have had over $1.5 billion in US direct sales in 2025, according to Consumer Edge data cited by Puck.

Implications for the retail industry: After a few tough years, the environment may be becoming more forgiving for retail IPOs. But companies can’t hope to ride on SpaceX’s coattails: Given the uncertain consumer environment, investors will closely scrutinize brands’ and retailers’ businesses for any signs of vulnerability.

Companies like Alo and Reformation with clear identities and credible growth paths are best positioned to be rewarded by the public markets.

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