Patagonia had its “two best years ever” during the downturn, according to an interview by Entrepreneur Magazine with founder and owner Yvon Chouinard. Sales are expected to reach nearly $340 million in its year ended April 2010, up from $315 million over the same period a year ago.
In its year ended April 2008, Patagonia's sales reached $270 million. Asked by the magazine how the company fared so well during the recession, Chouinard, who founded Patagonia in 1974, said, “Well, I think the key to surviving a conservative economy is quality. The No. 1 reason is that in a recession, consumers stop being silly. Instead of buying fashion, they'll pay more for a multifunctional product that will last a long time. They'll buy one jacket from us that works for skiing and on top of a suit in a rainstorm.”
He added, “Another reason is that we're out of debt. We can extend credit to our wholesale accounts that are hurting and can't get loans. These accounts are kicking out the little brands that they thought would be fun to put in favor of the stuff they know will sell…”
Chouinard also highlighted the success of the “1 percent for the Planet” program he co-founded that donates profits to environmental organizations, as well as Patagonia's new Common Threads Recycling Program that promises that none of Patagonia's products ever end up in a landfill.
