REI revenue, income fall in 2023; to expand in Texas
REI Co-op reported disappointing results for 2023.
The specialty outdoor retailer reported a net loss of $311 million for 2023. REI said the loss was driven by three factors, including investments in increased hourly employee pay, member rewards and a $169 million non-cash valuation allowance against its deferred tax assets. (REI added 1.3 million new members in 2023, and distributed $200 million through co-op member rewards.)
Revenue fell 2.4% to $3.76 billion.
In February 2023, REI laid off about 8%, or 167 workers, at its headquarters. The corporate layoffs were later followed by staff cuts in its retail operations. The company has continued to trim its workforce in 2024.
In a statement, president and CEO Eric Artz described 2023 as a year of “both growth and challenges for REI.”
“Despite these challenges, the co-op remained committed to increasing hourly pay for employees, making progress against our climate goals and supporting our nonprofit partners,” he said.
REI said it remains committed to increasing hourly employee pay, regardless of company performance. It distributed $57 million in employee retirement and incentives last year.
On the environmental front, REI noted that it made significant progress towards reaching its aggressive climate goals, with 2023 emissions coming down 10% compared to 2022 and 6% lower than emissions in its 2019 baseline year.
Additionally, REI celebrated its 11th year of powering U.S. operations with 100% renewable electricity and continued working to make local renewable energy more accessible everywhere it operates. It also achieved Climate Neutral certification for the fourth year in a row and diverted 86% of operational waste from landfills — remaining on track to meet its goal of being a Zero Waste organization by 2025.
REI noted that, in 2023, almost 53% of sales came from products with at least one sustainability attribute and 63% of sales volume came from brands that have science-aligned emissions reduction targets in place.
New store
REI, which plans to open 10 stores this year, said it will open a 21,7320-sq.-ft. location at University Park in College Station, Tex., in the fall. The store, which is less than a half mile from Texas A&M, will be the retailer’s 11th outpost in the state.
REI previously announced it will open locations in Beavercreek, Ohio and Beaverton, Ore. this spring. The summer lineup includes stores at Arrowhead Promenade, Glendale, Ariz.; Ithaca, N.Y.; and The River, Rancho Mirage, Rancho Mirage, Calif.
In the fall, the company will open stores in Albany, N.Y. and Tulsa, Okla.
REI operates more than 180 stores in 43 states.