REI releases 2025 financial results, narrows outdoor retailer’s full-year net loss to $54.3M

Seattle-based REI Co‑op released its 2025 financial results and impact report on Monday, April 4, outlining the company’s financials from the previous year.

According to REI, the company experienced disciplined execution and deliberate choices to strengthen the co-op’s business, and supported continued investment in members, employees and the outdoors.

The nearly 90-year-old outdoor retailer co-op closed fiscal 2025 with $3.537B in net sales, up slightly from 2024’s $3.526B.

Furthermore, stronger operating discipline and inventory management drove a 7% year-over-year increase in gross profit, REI said, while net income improved by $102M from 2024, narrowing the full-year net loss to $54.3M and delivered two profitable quarters to close out 2025.

REI 2025 financial numbers highlights

• $3.537 billion in net sales, up slightly from 2024.*
• $1.52 billion in gross profit, up $100 million, or 7%, 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.
• $121.9 million invested in employee incentives and profit sharing, a 44% 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 1M new members, bringing total memberships to more than 26 million.
• 15% reduction in emissions compared to the 2019 baseline year and achieved the company’s 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, Calif., and two relocations in Carlsbad, Calif. and Lynnwood, Wash.
• 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.
• *reported results relate to the 53-week and 52-week fiscal years ended Jan. 3, 2026 and Dec. 28, 2024, respectively.

According to a May 2025 press release, REI reported $3.53 billion in revenue for 2024, which was a 6.2% decrease from 2023 and a net loss of $156 million.

However, last year REI gained more than $100 million in profit, marking three consecutive quarters of sales growth, according to Laughton.

The co-op 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.

REI is in the midst of a rebrand as new president and CEO Mary Beth Laughton, now in her second year as the chief executive, continues to look for profitability and drive new successes.

“This past year showed what’s possible when we stay grounded in our Peak 28 strategy and true to who we are,” Laughton said. “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.”

But REI has been under fire after the co-op announced to employees in a February email from Laughton the company was planning on reducing starting pay for employees at retail stores, distribution centers and its headquarters beginning July 1, plus reduce benefits for all current employees.

Tensions between REI and the two unions, United Food & Commercial Workers (UFCW) and Retail, Wholesale and Department Store Union (RWDSU), representing REI employees began 2026.

According to a March 11 news release from the REI union (UFCW), the situation between the union and REI rapidly deteriorated in late February.

REI’s attorney notified the UFCW that the two sides were at an “impasse” and as a result, REI announced it would unilaterally implement the terms of its final contract offer, including the controversial pay and benefits cuts.

It is possible those early-year negotiations between the two parties could impact 2026 financials, but any facts related to those matters won’t be fully known until early 2027.

REI 2025 impact report highlights

• Through the Cooperative Action Network, REI employees and members generated 1.2 million messages (a record) to elected officials, helping secure major wins for the outdoors, including blocking proposed selloffs and supporting local ballot measures that unlocked more than $2.5 billion in funding for public lands nationwide.
• REI continued investing in circular textile innovation by entering a three-year offtake agreement with Ambercycle to help scale performance materials made from existing textiles rather than virgin polyester. 
• REI also advanced inclusive product design by redesigning kids’ Co‑op Cycles using data driven sizing and input from parents and caregivers, moving away from scaled-down adult designs to better reflect how kids move and grow.

“Our impact comes to life through the people who show up every day to protect the outdoors and expand access,” Susan Viscon, REI Chief New Ventures and Impact Officer said. “Looking ahead, we’ll continue building on this momentum by investing in solutions that deliver lasting benefits for people, places and the outdoor industry.”

To read the full 2025 financial results and impact report from REI, click here.