REI Co-op reported that 2024 net sales declined approximately 6.2 percent to $3.53 billion, compared to $3.76 billion in 2023, while investing over $282 million back into its co-op community and ending the year in a cash flow neutral position.

The company noted that the upward financial trajectory and its zero waste milestone were “a direct result of the incredible achievements made by REI’s 14,000 employees to serve its growing co-op community of over 25 million members and customers.”

“The last few years have been challenging, not just for REI but for the greater outdoor industry,” said REI President and CEO Mary Beth Laughton. “And yet I remain hopeful. The co-op is a special place of 14,000 passionate employees and 25 million members united by a shared sense of purpose. It’s this community, and the incredible work it does to support our public lands and the inclusive future we seek to build, that first drew me to REI.”

Income Statement Summary
Gross margin improved year-over-year, growing 170 basis points to 40.4 percent of net sales in 2024, compared to 38.7 percent in 2023. The retailer reduced operating expenses year-over-year, amounting to $1.58 billion in 2024, compared to $1.67 billion in 2023. The resulting operating loss shrank to a loss of $154.6 million, compared to a loss of $213.8 million in 2013.

The net loss was nearly halved year-over-year, with 2024 producing a net loss of $156.4 million, compared to the 311.1 million in 2023. The co-op reported the net loss to be primarily driven by its “commitment to giving back to members in the form of member rewards, to society in the form of giving and to our employees in the form of performance incentives and retirement contributions.”

There is a $209.4 million non-cash valuation allowance reserve against REI’s future tax credits and attributes. This reserve is required under current accounting guidance; however, the co-op continues to believe it will be able to use the majority of these tax credits and attributes in the future when it returns to profitability, then it can use the deferred tax assets and reverse the related valuation allowance accordingly.

Balance Sheet Summary
REI’s cash and equivalents line nearly doubled year-over-year to $284.0 million at the 2024 year-end on December 28, 2024, compared to $144.2 million at December 30, 2023 (2023 year-end). The co-op reversed its cash line growth in the short-term investments line, which was $55.3 million at 2024 year-end, compared to $199.2 million at 2023 year-end.

Inventories were cleaner at year-end, totaling $564.7 million, compared to $635.9 million at the 2023 year-end.

In financing activities, proceeds from the co-op’s sale of memberships were $32.0 million in 2024, compared to $37.4 million in 2023.

REI Co-op Reported in 2024:

  • Opened 10 new stores, including its first in Kentucky;
  • To be the first major U.S. retailer to achieve the industry definition of zero waste, diverting 90 percent of waste from landfills across its operations;
  • Reduced its emissions in 2024 by 7 percent when compared with 2023, and 12 percent compared with its 2019 baseline year;
  • Invested $84.8 million in incentives and profit sharing for employees, a 48.5 percent increase from 2023;
  • Added over one million new members and distributed $189 million to members through co-op member rewards; and
  • Invested $8.9 million in over 300 non-profit partners.

Image courtesy REI Co-op

See below for SGB Media coverage of the REI Board elections impacted by the REI Union:

EXEC: REI Members Reject Three Co-op Backed Board of Directors Candidates