REIs fiscal 2004 sales increased 10.2%, from $805 million to $887 million for 2004. REI's 2004 operating income increased from $56 million to $72 million, with $25.3 million in net income. This rose from 2003s net income of $19.1 million. Comp store growth for 2004 was 5.3% versus 2.9% in 2003; and Direct Sales posted an overall gain of 11.3%, led by online sales growth from REI.com and REI-OUTLET.com. Based on 2004 results, the outdoor retailer also increased its financial support of environmental stewardship efforts to $2.5 million for 2005.
The company also announced a $44 million member refund to its active members.
“In addition to paying a sizeable member refund and setting aside a record amount for donations, our strong 2004 results allow us to continue to invest in efforts that support both our continued business success and our members and employees,” said REI CFO Brad Johnson. “The strength of 2004 enables us to add retail stores, remodel existing stores, further develop REI Gear and Apparel products, expand distribution capacity and invest in our employee team.”
Also supporting REIs 2004 growth was the opening of seven new retail stores in Hingham, Mass.; Henderson, Nev.; Hillsboro, Ore.; Encinitas and Rancho Cucamonga, Calif.; Rockville, Md.; and Houstons Willowbrook community. Additionally, the company relocated its Lynnwood, Wash. store to the newly expanded Alderwood Mall, and its Portland, Ore. store from Jantzen Beach to the downtown Pearl District. The new Portland store received a LEED® (Leadership in Energy and Environmental Design) for Commercial Interiors Gold Rating, making it the first retail store in the U.S. to achieve this standard.
“We are very optimistic about 2005,” Johnson said. “Our investments in stores, people, inventory, technology and infrastructure are helping support great performance. The only dark cloud in 2004 was the lack of winter weather in key markets at years end. If we return to normal weather in 2005, our prospects of building on success are excellent.”
