REI Co-op released its 2025 financial results Monday, which showed the company is narrowing its losses but simultaneously facing its most significant labor challenge in decades.
As the co-op works toward its “Path to Profitability,” it is facing a high-stakes standoff with its unionized workforce just days before its biggest sales event of the year. The REI Union announced Friday that it has launched a boycott of REI’s key Anniversary Sale, alleging that the co-op is bargaining in bad faith.
Financial Turnaround: The “Peak 28” Momentum
REI improved its bottom line by $102 million in 2025, a result of the co-op’s “Peak 28” three-year strategic plan, according to the company. By sharpening its focus on product margins and inventory management, REI has begun to pull itself out of the deep deficits of the early 2020s. The company also added one million new members in 2025, bringing the total REI Co-op membership to 26 million.
REI 2025 Financial Results
- Net Sales: $3.54 billion, a slight increase over 2024.
- Net Loss: $54.3 million, down from a $156.4 million loss in 2024 and a $311 million loss in 2023.
- Gross Profit: Rose 7% year-over-year to $1.52 billion.
- Quarterly Profit Improvement: The co-op delivered two profitable quarters to close out the year, a key milestone for the turnaround effort.
“This past year showed what’s possible when we stay grounded in our Peak 28 strategy and true to who we are,” Mary Beth Laughton, president and CEO of REI Co-op said in a statement. “We’re seeing clear signs that our plan is working, strengthening the business now and shaping a stronger future for the co-op.”
REI’s financial trend since 2019 shows both the highs and lows from the COVID-19 pandemic. Source: REI Financial news. Data verified by Shop Eat Surf Outdoor; visualized using AI.
The Labor Conflict: Anniversary Sale Under Fire
However, the financial improvement is being overshadowed by a nationwide boycott call from the REI Union. Represented by the UFCW and RWDSU, the union has urged supporters to skip the Anniversary Sale from May 15–25, alleging that the co-op is bargaining in bad faith.
“REI has refused to offer us a fair contract, despite our willingness to compromise,” Alex Pollitt, an REI worker in Bellingham, Washington, 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.
Jeff Rosen, a worker at the Castleton, Indiana store, warned that the co-op’s current trajectory, including the acceleration of AI and store credit cards, is drifting away from its core values.
“I work here because of my love for the outdoors, but that love doesn’t pay the bills,” Rosen said in a statement.
REI Responds to Anniversary Sale Boycott
REI management said that they remain ready to negotiate but that the union is prioritizing public pressure over the bargaining table.
“Union leaders have called for a boycott… This is a disappointing move that targets the co-op,” the company said in a statement released on May 2. “It seems the union’s focus is 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.”
REI C-Suite Changes Since 2024
A new leadership team is working to improve the strategy and financials of the outdoor industry’s largest outdoor retailer.
REI has leaned heavily into executives with experience at digitally native and retail giants like Nike, Sephora and Foot Locker.
Key hires in the last 24 months include:
- Mary Beth Laughton, president and CEO: Formerly of Nike, Sephora and Athleta, Laughton joined REI in early 2025 tasked with stabilizing the co-op’s fiscal health and sharpening its omni-channel strategy.
- Kim Waldmann, chief commercial officer: Joined in 2026 from Foot Locker to oversee the entire retail and e-commerce ecosystem.
- Kristin Shane, chief merchandising officer: Hired in 2025 to revitalize the gear and apparel assortment. She previously worked at Guitar Center, PetSmart and Target.
- Abigail Jacobs, chief marketing officer: Formerly of Sephora, Jacobs joined in late 2024 to drive membership growth and other marketing initiatives.
- Guillaume Ledieu, SVP, chief technology officer: Promoted in 2024 to lead the co-op’s digital acceleration and AI integration.
REI Major Structural Announcements
To stem the losses of 2022 and 2023, REI has also restructured the business in multiple ways, including:
- Exit of Experiences: In January 2025, REI announced the closure of its adventure travel and guided trips division. This 40-year-old pillar was cut to focus entirely on the core retail business, resulting in 428 layoffs.
- Corporate Layoffs: Between 2023 and 2024, the co-op eliminated hundreds of corporate roles, including 8% of HQ in one round, to reduce overhead.
- Real Estate Shift: In 2020, REI sold its brand-new, never-occupied eight-acre Bellevue headquarters for $39 million to shore up cash, moving to a distributed work model. More recently, the co-op has moved away from high-rent urban flagships, confirming the future closures of stores in SoHo (NYC) and Boston (Fenway).
REI’s $300 Million in Community Investment in 2025
REI said Monday that it remains focused on the “Triple Bottom Line,” reporting that it invested more than $300 million back into its members, employees, and the outdoors in 2025.
This total includes:
- Member Rewards & Retirement: Direct payouts to the co-op’s 25 million lifetime members and retirement contributions for its workforce.
- Nonprofit Giving: Strategic grants aimed at climate action and outdoor equity.
- Civic Action: The co-op helped generate a record 1.2 million messages to elected officials regarding public lands protection through its Cooperative Action Network.
