REI Closed Out 2025 With Two Profitable Quarters to Narrow Loss for the Year

REI said net sales for 2025 were $3.54 billion, up slightly from 2024 levels.​REI said net sales for 2025 were $3.54 billion, up slightly from 2024 levels. 

REI Co-op ended 2025 with stronger operating discipline and inventory management, driving a 7 percent year-over-year increase in gross profit.

That result helped the retailer narrow its full-year net loss to $54.3 million. The company also had good contribution from two profitable quarters as its closed out 2025. Net sales were $3.54 billion, up slightly from a year ago. REI also said that the gross profit for the year was $1.52 billion, helped by “healthy full-price selling.”

The improvement in earnings results was due in part to continued momentum of key initiatives outlined as part of its Peak 28 three-year strategic plan, disclosed last September.

The goals of Peak 28 include selling products that are in stock, priced right and trend right, as well as inspire customers to shop at REI by offering and promoting elevated service and experiences in-store and online.

“This past year showed what’s possible when we stay grounded in our Peak 28 strategy and true to whowe are,” said REI president and CEO Mary Beth Laughton. “We’re seeing clear signs that our plan is working, strengthening the business now and shaping a stronger future for the co-op.”

The retailer, which added one million new members to bring its total membership to more than 26 million, said it distributed $203 million to members through Co-op Member Rewards. It invested $121.9 million in employee incentives and profit sharing, up 44 percent from 2024 levels. The company also donated $11.8 million to outdoor nonprofits through the co-op and generosity of partners and customers.

The company also made progress on the sustainability front. It reduced emissions by 15 percent versus the 2019 baseline year, achieving the industry leading waste diversion goal for the second consecutive year. REI representatives also advocated in Washington, D.C., and across state capitals to protect public lands and expanding access.

REI opened six store locations, including four net-new doors in Amherst, N.Y.; Chico, Calif.; Durango, Colo., and Elk Grove, Calif. Two of the new stores were relocations in Carlsbad, Calif., and in Lynnwood, Wash.

Earlier this year, REI named former Foot Locker executive Kim Waldmann as its new chief commercial officer.

The outdoor retail sector has been undergoing change for the past year, with retailers such as REI disclosing that it would close three stores this year, including its high profile, 40,000-square-foot store in the SoHo neighborhood of Manhattan.