REI shrinks net loss in 2025; faces boycott of its biggest annual sales event
REI Co‑op ended the year on an upbeat note as its year-over-year loss shrunk, but the positive developments were tempered by a possible boycott of its annual anniversary sale.
On the same day that the company reported its 2025 results, REI Union, which represents workers at 11 unionized REI stores, announced a call for a boycott of the retailer’s anniversary sale, set to take place May 15 through 25. The call came after contract negotiations concluded this week without a fair contract, the union said.
In a press release, REI Union said it has the backing of 70,000 REI Co-op members who have already pledged not to shop during REI’s anniversary sale if the company continued to bargain in bad faith.
"REI has refused to offer us a fair contract, despite our willingness to compromise,” Alex Pollitt, an REI worker in Bellingham, Wash., said in a statement. "The union claims the co-op is pushing for contract provisions that would pay unionized workers less than non-union staff and restrict their ability to speak out publicly."
REI union members are represented by the United Food and Commercial Workers (UFCW) Locals 5, 663, 700, 1208, 1445, 3000, and the Retail, Wholesale and Department Store Union (RWDSU).
REI responded to the call for a boycott, saying it remains ready to negotiate in good faith at the bargaining table — “not on social media and not in response to public attacks or pressure campaigns.” It called the boycott a “disappointing move” and accused the union of focusing on “harming the financial wellbeing of the business, instead of advancing negotiations.”
“Every day spent escalating a public conflict is a day not spent at the bargaining table working to reach an agreement that supports our employees and protects the long‑term health of the co‑op,” REI stated. "We’re ready to continue bargaining when the union is willing to return to the bargaining table, as they have said they have no current interest in continuing to meet.”
2025 Financials
REI closed the year with $3.54 billion in net sales, up from $3.53 from 2024. The retailer narrowed its full-year net loss to $54.3 million, down from a $156.4 million loss in 2024 and a $311 million loss in 2023. It noted that it also delivered two profitable quarters to close out 2025.
REI said that stronger operating discipline and inventory management drove a 7% year-over-year increase in gross profit.
The improvement in earnings came as REI saw momentum on several key initiatives outlined as part of its “Peak 28” three-year strategic plan, which includes a sharper focus on product margins and inventory management. It was launched last year.
"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. "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."
[READ MORE: REI to close NYC flagship, two other locations]
REI added one million new members in 2025, bringing its total membership to more than 26 million. It also had a 15% reduction in emissions compared to the 2019 baseline year.
The company said it invested $122 million in profit-sharing and employee incentives in 2025, up 44% year over year.
