REI sent a letter to its members Thursday announcing that the outdoor retailer did not post a profit in 2020 and thus its member dividend will be structured differently this year.
“2020 was a year like no other—at the co-op and around the world,” REI Vice President of Marketing Vivienne Long said in the email. “Many organizations would say that the past year was among the most difficult years in their history. The same is true for our co-op.”
“…And while we ended the year in a strong financial position, with a healthy cash balance and no debt, our temporary store closure and great challenges posed by the pandemic meant we ended 2020 without making a profit,” she said.
REI has not yet disclosed its 2020 revenue and profit figures, something that typically happens in April. In 2019, the company reported $3.1 billion in revenue and $21 million in net income.
Once REI reopened and demand for all things outdoor soared, many new customers discovered the retailer. Long said nearly 1 million new members joined the REI co-op in 2020 and REI made it through 2020 in better financial shape than originally projected.
“We believe the future is brighter than ever,” Long said.
Because REI did not make a profit, however, instead of receiving a dividend this year, REI is offering members 10% back on eligible full-price purchases in 2020.
“It’s our way of saying thank you for your loyalty and support in 2020, and our hope that you get to enjoy lots of time outside in 2021,” Long wrote. “In good times or bad, our community always comes first. It’s the co-op way.”
