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REI Co-op's Financial Results and Impact Report for 2025

REI Co-op has released its comprehensive financial results and Impact Report for 2025, revealing significant achievements in both sales and community involvement. The cooperative reported a net sales figure of $3.54 billion, reflecting a slight increase from the previous year. This growth was driven by enhanced operational discipline and improvements in inventory management, leading to a 7% year-over-year rise in gross profit. While the company faced challenges, including a narrow full-year net loss of $54.3 million, it achieved a profitable finish for the last two quarters of 2025.

Mary Beth Laughton, the company's president and CEO, expressed optimism about the future, highlighting the effectiveness of their strategic plan, Peak 28. She emphasized, “This past year showed what's possible when we stay grounded in our Peak 28 strategy and true to who we are.” The report demonstrated that the co-op plans to maintain a long-term focus while increasing investment in members and sustainable practices.

Key Financial Highlights

• - Net Sales: Closed the year at $3.54 billion.
• - Gross Profit: Increased to $1.52 billion, up from the previous year by $100 million.
• - Member Rewards: $203 million was distributed back to members.
• - Employee Engagement: Investments in employee incentives hit $121.9 million, marking a 44% rise from 2024.
• - Community Contributions: $11.8 million was unlocked for outdoor nonprofits, significantly aiding local initiatives aimed at making the outdoors more accessible.
• - Membership Growth: REI added one million new members, bringing the total membership to over 26 million.
• - Environmental Impact: A 15% reduction in carbon emissions was achieved compared to the 2019 baseline, alongside a fulfillment of waste diversion goals for two consecutive years.

Advocacy and Environmental Commitment

Aside from its financial achievements, REI Co-op also made strides in advocacy for public lands. The cooperative formed a robust response to threats against national parks and green spaces, enabling the generation of a record 1.2 million messages directed towards elected officials. This grassroots campaign effectively highlights REI's ongoing commitment to protecting outdoor spaces, ensuring future generations can enjoy unhindered access to nature.

In terms of sustainable product offerings, REI is progressing towards more inclusive and environmentally friendly gear. They entered a three-year agreement with Ambercycle, aiming to enhance their use of circular textile innovations, which recycle existing materials instead of relying solely on new, petroleum-based resources. Ajay Chadha, the Co-op's materials innovation director, articulated the excitement behind integrating technologies that can minimize waste while supporting the organization’s climate goals.

Furthermore, REI’s approach to product design has shifted to focus on inclusivity, evidenced by their redesign of children's bikes based on data-driven insights and feedback from parents. This shift emphasizes a consideration for the needs of young outdoor enthusiasts, challenging conventional industry practices in favor of designs that accommodate the way children grow and move.

Looking Ahead

REI Co-op's 2025 Impact Report indicates a strong sense of direction and commitment to the environment, community, and its members. Leaders at REI continue to highlight the importance of financial results, not just as profit but as a means to further invest and enhance the outdoor experience for everyone. As Susan Viscon noted, “Our impact comes to life through the people who show up every day to protect the outdoors and expand access.” REI plans to maintain this momentum, delivering lasting benefits and advocating for the outdoor industry in the years to come.

To explore the complete financial results and the full Impact Report, visit rei.com/impact.

With its ongoing commitment to innovation and community, REI Co-op remains a leader in the outdoor retail sector, poised for future growth while championing sustainable practices and inclusivity on a larger scale.