REI has told its vendors it is committed to doubling its $1.66 billion annual sales in the next five years, Black Diamond Equipment Inc. CEO Peter Metcalf told analysts last week at the Needham & Company, LLC 14th Annual Growth Conference.



“Our business… is hitched to some of the fastest and best-run companies in the global outdoor space, including REI, MEC and Backcountry.com,” said Metcalf while laying out the company’s strategy of growing alongside the “thoroughbred race horses” of the industry. “REI… is committed to doubling in five years and we are one of their Top 10 and designated strategic suppliers.”

 

 


Metcalf said Black Diamond and Gregory Mountain branded products are now sold at about 4,500 retail doors globally. In North America, the company should be able to meet its growth objectives without having to grow its doors more than 10 percent, with much of that growth coming when it adds apparel in 2013. 


Metcalf played down the impact of unseasonably warm winter weather, given its geographic and product diversification. About 45 percent of BDE revenues come from spring product. He noted that while it has been warm in New England, it has been cold out west, which has resulted in excellent ice climbing. Furthermore, retailers in Vail recently told Metcalf that some skiers are skinning up the mountain rather than buy lift tickets.


“When you have a winter that is fairly mediocre, yes, we are going to feel that, but we are not going to feel it anywhere near the way a ski company will be,” he said. “If it’s warm and mild, our retail customers are accelerating bringing in spring goods. It could be trekking poles, it could climbing, it could be back packing, in could be mountaineering product.”