SEATTLE (BRAIN) — REI Co-op net sales for 2024 declined 6.2% year-over-year with new CEO Mary Beth Laughton acknowledging a challenging marketplace "and yet I remain hopeful."
Net sales for the year were reported at $3.53 billion, compared with $3.76 billion in 2023. Net loss for the year was $156.4 million, compared with $214.6 million in 2023. REI said the loss primarily occurred because of "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."
A million new members joined the co-op in 2024, bringing its total to more than 25 million, according to REI, which distributed $189 million in member rewards and opened 10 new stores including the first in Kentucky.
"It's this community, and the incredible work it does in support of our public lands and the inclusive future we seek to build that first drew me to REI," said Laughton, who succeeded Eric Artz, who retired at the end of March.
REI reported a gross margin of 40.4% in 2024, a 1.7% increase from the prior year. A $209.4 million noncash valuation allowance reserve exists against REI's future tax credits and attributes. According to REI, it continues to believe it will be able to use the majority of the tax credits and attributes in the future when it returns to profitability.
The co-op also released its impact report, and said it became the first major U.S. retailer to achieve industry definition of zero waste, diverting 90% from landfills in its operations. It also achieved a goal to receive certification under The Change Climate Project's new Climate Label standard. REI made Climate Label certification a preferred attribute in the 2025 version of its Product Impact Standards to encourage partners to consider whether the certification is right for their brand.
