REI Co-op reported a slight gain in sales in 2025 while significantly narrowing its net loss for the year, including delivering two profitable periods in the third and fourth quarters.

In a statement, the co-op said it “generated momentum by advancing key initiatives within its Peak 28 three-year strategic plan, sharpening priorities around product, service and the membership experience while maintaining disciplined investment and a long-term focus.”

Sales for the fiscal year ended January 3 reached $3.54 billion in net sales, up from sales of $3.53 billion in 2024. The slight gain in sales follows declines 6.2 percent in 2024 and 2.4 percent in 2023.

The net loss shrank to $54.3 million from $156.4 million. The loss was $311.1 million in 2023. REI attributed the lower loss in 2025 to “stronger operating discipline and inventory management.”

REI said it also invested more than $300 million in members, employees and communities through member rewards, performance incentives and retirement contributions, and nonprofit giving, “reinforcing the connection between financial performance and long-term impact.”

“This past year showed what’s possible when we stay grounded in our Peak 28 strategy and true to who we are,” said Mary Beth Laughton, president and CEO of REI Co‑op since early 2025. “We’re seeing clear signs that our plan is working, strengthening the business now and shaping a stronger future for the co-op. Alongside that progress, employees and members continue to live our values by showing up for public lands and protecting access to the outdoors for generations to come.”

Highlights of 2025 include:

  • $3.54 billion in net sales, up slightly from 2024.
  • $1.52 billion in gross profit, up $100 million, or 7 percent, year-over-year, driven primarily through healthy full-price selling and strong operating discipline and inventory management.*
  • $203 million distributed to members through Co‑op Member Rewards, up from $189 million in 2024.
  • $121.9 million invested in employee incentives and profit sharing, a 44 percent increase from 2024.
  • $11.8 million donations unlocked for outdoor nonprofits through the co-op and generosity of partners and customers. A significant portion of that support flows through the REI Cooperative Action Fund, a 501c(3) that invests in more than 360 local nonprofits working to make the outdoors more accessible for everyone.
  • Added one million new members, bringing total membership to more than 26 million.
  • 15 percent reduction in emissions compared to the 2019 baseline year and achieved our industry leading waste diversion goal for the 2nd consecutive year.
  • Opened six store locations, including four net-new stores in Amherst, NY, Chico, CA, Durango, CO and Elk Grove, CA, and two relocations in Carlsbad, CA, and Lynnwood, WA.
  • Earned recognition from Forbes, Inc. and TIME for social impact, trust and brand leadership, and from the Human Rights Campaign for leadership on workplace equality.

Laughton, who previously headed Nike’s global direct-to-consumer business and earlier led Athleta, is undertaking numerous restructuring steps at REI to shore up profitability and reignite growth.

In September of 2025, REI introduced “Peak 28: Ascending Together,” a three-year “transformation strategy” calling for a “commitment to building trust, product leadership, elevated service, and a revamped membership program.” The plan is “designed to help the co-op get back to growth,” Laughton said in a memo at the time.

Last October, REI confirmed plans to close its Paramus, NJ, store in the first quarter of 2026, as well as its only store in Boston and its flagship in the SoHo neighborhood of Manhattan in late 2026.

In March of this year, REI revealed plans internally to reduce its pay rates for future employees and scale back benefits for current employees to improve profitability.  Bloomberg also attained a note to company employees memo by Laughton from February that indicated REI was making some changes to workers’ benefits, including slowing vacation time accrual, switching from guaranteed retirement contributions to a more traditional company match model and changing sick days from an across-the-board policy to one that aligns state-by-state with what is legally required.

Laughton in the note at the time wrote, “We’re still spending more than we bring in and expect continued economic pressure this year. While we’ve taken significant steps already to manage costs, we’re still on the climb toward a healthy financial position.”

Image courtesy REI Co-Op