REI (Recreational Equipment Inc.) reported sales reached $1.93 billion for the year ended Dec. 31, 2012, up 7.3 percent from 2011. The nations largest retail cooperative said it would return $104 million in pre-tax patronage dividends to its members, representing roughly 10 percent of eligible purchases.
Gross profit increased 4.5 percent to $802.6 million, or 41.5 percent of net sales, down 9 basis points from a year earlier. The company spent $68.5 million on advertising in 2012, up 14.0 percent from 2011.
Because its members typically only redeem 85 percent of outstanding dividends, REI set aside $89.3 million for payment of patronage dividends earned in 2012, up 9.0 percent compared with 2011.
REI, which only pays taxes on income not distributed to its members, said its provision for income taxes declined 4.9 percent to $15.6 million. That equaled 34.9 percent of revenues ex-dividend and 11.6 percent of income before patronage dividend and income taxes. Net income reached $29.01 million, down 3.9 percent from a year earlier.
REI ended the year with $339.0 million in inventory, up 7.2 percent from a year earlier.